Inside Phillips Exeter’s $2.19B Balance Sheet: $123,318 Per-Student Spending and a $1.67B Endowment
By Data Team | Published October 19, 2026
Phillips Exeter Academy's total assets reached $2.20 billion in fiscal year 2025, driven by a $1.67 billion endowment. This capital framework allows the institution to spend $123,318 per student annually—nearly double its published tuition rate—while distributing $29.2 million in financial aid, according to the school's latest IRS filing.
For prospective families evaluating the independent boarding school market, Exeter's financials illustrate how university-scale wealth shapes academic outcomes. Baseline tuition and fees generate roughly $66,235 per student, while endowment distributions cover the remaining $57,083 per-student gap. This funding model supports comprehensive financial aid for 45% of the student body and sustains the Harkness pedagogy associated with Exeter's performance in the Elite College Placement Index (ECPI).
Exeter’s independent capitalization insulates its operations. Rather than relying primarily on tuition increases to balance budgets, the academy utilizes investment returns to fund global recruiting, need-blind aid, and specialized academic programming.
Institutional & Governance Profile
Operating in Exeter, New Hampshire, Phillips Exeter Academy blends historical charter traditions with modern fiduciary oversight. The institution's governance utilizes a professional executive cabinet alongside an independent board of trustees to manage its multi-billion-dollar balance sheet.
Institutional Scale and Board Structure
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Founding & Workforce Scale: Founded in 1781, the academy issued 1,314 Form W-2s in calendar year 2024 and engaged 4,177 documented volunteers.
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Executive Leadership: Principal William Rawson leads the academy alongside Chief Financial Officer Marijka Beauchesne.
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Governing Board (Schedule O): The board features 22 voting trustees, including 21 independent members.
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Academic Focus: Exeter centers its pedagogy on the Harkness method, demanding active discussion around seminar tables, supporting 1,106 regular session students.
Top-Line Financials
Exeter's balance sheet mirrors a mid-sized university. Reaching $2.20 billion in total assets in FY25 (July 1, 2024 to June 30, 2025), the academy grew its net assets significantly while effectively managing long-term liabilities.
Balance Sheet Strength
- Total Assets $2,196,295,020 (+5.7%)
- Total Liabilities $180,825,707 (-6.4%)
- Total Net Assets $2,015,469,313 (+6.9%)
- Donor-Restricted Net Assets $1,440,149,905 (71.5% of Total Net Assets)
- Unrestricted Net Assets $575,319,408 (28.5% of Total Net Assets)
Operating Performance
- Total Revenue $239,865,952 (+28.1%)
- Total Expenses $166,349,787 (+5.2%)
- Operating Surplus $73,516,165 (+152.7%)
- Unrealized Gains (Excluded) $52,327,422
Note: The $73.5 million reported operating surplus reflects standard Form 990 accounting parameters, capturing high realized investment returns. Adding the $52.3 million in unrealized investment gains captures the full scope of Exeter's FY25 net asset expansion.
Revenue Breakdown
Revenue diversification defines Exeter's financial model. Unlike private schools heavily dependent on tuition, Exeter generated over half of its $239.8 million FY25 revenue from realized investment income. This distribution shields the operating budget from localized enrollment shifts.
Primary Revenue Streams
FY25 Revenue Distribution
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Investment Income Up 36.2% YoY$123,847,094 (51.6%)
- Realized Capital Gains $114,880,987
- Dividends & Interest $8,966,107
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Program Service Revenue Up 6.8% YoY$81,450,292 (34.0%)
- Tuition & Fees $73,256,376
- Auxiliary & Summer Programs $8,193,916
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Contributions & Grants Up 75.3% YoY$33,235,586 (13.9%)
- Noncash Stock Gifts (142 Items) $10,842,077
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Other Revenue$1,332,980 (0.5%)
Endowment Performance and Asset Allocation
Exeter manages its $1.67 billion endowment using strategies aligned with major research universities. The academy allocates nearly half of its portfolio to alternative assets—primarily absolute return, private equity, and real estate—and deploys significant capital ($569.8 million) through offshore structures in Central America and the Caribbean.
Because Exeter qualifies as a secondary school under federal tax law, the academy remains exempt from the IRC Section 4968 endowment excise tax on net investment income that affects similarly wealthy colleges.
Portfolio Performance & Asset Allocation ($1.53B Evaluated)
Schedule D, Part VII Allocation
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Endowment Balance (EOY): $1,677,405,802 (up 7.3% YoY).
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Net Investment Gains: $173,415,520 (Schedule D, Part V).
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Offshore Capital: $569.8 million deployed via Central American and Caribbean structures.
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Total Payout: $80,331,805 ($55.8M to operations; $24.0M to financial aid/scholarships).
Detailed Asset Mix
5-Year Endowment History
Examining the five-year trajectory of Exeter's endowment across Schedule D disclosures shows consistent growth. Starting from a $1.31 billion beginning balance in FY21, the endowment absorbed $109.4 million in direct contributions alongside significant investment gains. Despite a $141.8 million market contraction in FY22, the endowment distributed $338.4 million toward scholarships and operations over five years while expanding its final balance to $1.67 billion.
FY25 Endowment Waterfall (Schedule D, Part V)
Visualizing the bridge from Beginning of Year (1a) to End of Year (1g) in millions.
5-Year Historical Endowment Balances (Line 1g)
End of year balance progression in millions (FY21 - FY25).
| IRS Line Item | FY25 (Current) | FY24 (Prior) | FY23 (2 Yrs Back) | FY22 (3 Yrs Back) | FY21 (4 Yrs Back) |
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| 1a. Beginning of year | $1,563,434,897 | $1,518,755,827 | $1,432,678,577 | $1,616,411,173 | $1,313,339,317 |
| 1b. Contributions | $20,887,190 | $12,235,929 | $18,254,460 | $23,826,079 | $34,203,091 |
| 1c. Net investment earnings | $173,415,520 | $128,721,364 | $138,381,111 | ($141,813,214) | $337,216,640 |
| 1d. Grants or scholarships | ($23,991,914) | ($22,904,037) | ($22,475,570) | ($21,619,501) | ($22,015,150) |
| 1e. Other expenditures | ($55,817,928) | ($72,867,426) | ($47,590,751) | ($43,715,960) | ($45,929,792) |
| 1f. Administrative expenses | ($521,963) | ($506,760) | ($492,000) | ($410,000) | ($402,933) |
| 1g. End of year balance | $1,677,405,802 | $1,563,434,897 | $1,518,755,827 | $1,432,678,577 | $1,616,411,173 |
Per-Student Spending and True Cost
Comparing tuition revenue against instructional expenditure reveals the economics of an Exeter education. Tuition and fees generate roughly $66,235 per student, covering 53.7% of what the academy spends ($123,318) per pupil during the regular academic year.
Outspending baseline tuition revenue by over $57,000 per student provides resources comparable to a residential college. This structural subsidy finances Exeter's 6:1 faculty ratio and Harkness class sizes, capping discussions at 12 students per table.
Operations vs. Revenue
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Regular Session Program Spend: $136,389,993 across 1,106 students ($123,318 gross spend per student).
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Tuition & Fee Revenue: $73,256,376 ($66,235 per student before financial aid discounts). Endowment distributions cover the remaining $57,083 per-student gap.
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Summer Session: The Exeter Summer Program generated $8,193,916 in revenue against $6,406,686 in expenses, contributing a surplus toward operations.
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International Reach: Spent $32,681 on East Asian and Pacific admissions recruitment and hundreds of thousands on global study programs.
Financial Aid: Investing $29.2M in Access
Exeter supports its founding mandate to educate "Youth from Every Quarter" through financial aid distribution. The academy funds $29.2 million in total assistance, discounting tuition for 498 regular-session students while providing $1.93 million in noncash wraparound aid and $95,632 in direct cash stipends for books, travel, and extracurricular activities.
This funding addresses socioeconomic barriers within its residential boarding community, meeting 100% of demonstrated need without requiring families to take on loans.
Internal Student Support
- Aided Student Share 45% (498 students)
- 9-Month Tuition Grants $26,160,572
- Average Grant per Student $56,407
- Wraparound Noncash Aid $1,930,319
- Direct Cash Stipends $95,632
Summer & Auxiliary Support
- Summer Scholarships $896,328
- Summer Aid Recipients 135 Students
- Auxiliary Aid $181,376
Executive and Investment Team Compensation
Exeter’s highest-paid employee is Principal William Rawson, earning $868,710 in total compensation. The compensation structure reflects the requirements of managing a multi-billion-dollar academic enterprise, with executives leading investments, institutional advancement, and finance.
Payroll Scale and Compensation Governance
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Total Institutional Payroll: Exeter paid $80.5 million in total employee compensation across 1,314 W-2 employees. Over 136 staff members earned above $100,000.
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Investment Team Leadership: Director of Investments Justin Merrill earned $459,116 managing a $1.67 billion portfolio.
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On-Campus Housing: The Principal and Assistant Principal receive tax-free on-campus housing as a condition of employment, enabling participation in student activities outside standard business hours.
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Form 990, Schedule J, Part II: Compensation Breakdown (FY25)
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| Name & Title (A) | Base Comp (B-i) | Bonus (B-ii) | Other (B-iii) | Retirement & Deferred (C) | Nontaxable Benefits (D) | Total (E) | Prior Deferred (F) |
| William RawsonPrincipal | $618,959 | $0 | $36,379 | $165,546 | $47,826 | $868,710 | $0 |
| Justin MerrillDirector of Investments | $398,779 | $0 | $90 | $38,852 | $21,395 | $459,116 | $0 |
| Morgan DudleyDir. Institutional Advancement | $362,080 | $0 | $41,400 | $396 | $40,611 | $444,487 | $0 |
| Marijka BeauchesneChief Financial Officer | $379,491 | $0 | $75 | $38,852 | $19,413 | $437,831 | $0 |
| Holly BarcroftGeneral Counsel | $330,127 | $0 | $75 | $38,852 | $51,644 | $420,698 | $0 |
| Karen LasseyAssistant Principal | $219,417 | $0 | $27,923 | $2,658 | $95,496 | $345,494 | $0 |
| Tom TsengDir. Intl. & Principal Gifts | $229,162 | $0 | $27,499 | $258 | $504 | $257,423 | $0 |
Facilities, Debt, and Construction
Phillips Exeter maintains a sprawling historic campus. Rather than liquidating high-yield endowment assets to fund major renovations, the academy utilizes the tax-exempt municipal bond market to optimize its capital structure, securing low-cost funding while its endowment continues compounding.
Capital Debt & Contractors
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Physical Plant & Campus Operations: Exeter holds $651.1 million in gross property and buildings ($391.1 million net book value after depreciation). The academy spent $7.12 million on occupancy and campus operations in FY25, alongside $19.44 million in annual asset depreciation.
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Tax-Exempt Bonds & Interest: The academy holds $80.0 million in tax-exempt bond liabilities issued via the New Hampshire Health and Education Facilities Authority (NHHEFA) to fund capital construction and refund prior 2007 bonds. Exeter recorded $2.92 million in total FY25 interest expense.
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Municipal Relations: Unlike some regional peer institutions that make voluntary Payments in Lieu of Taxes (PILOT), Exeter's FY25 Form 990 does not report any discretionary municipal contributions to the Town of Exeter, relying entirely on its standard non-profit property tax exemptions for its campus real estate.
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Top Contractors: Reflecting its scale of campus development, the largest independent contractor disbursement went to Harvey Construction Co Inc ($34.06 million) for construction services, followed by Consigli Construction ($4.57 million) and Beyer Blinder Belle Architects ($659,742).
Editorial Note
All financial figures in this report derive from Phillips Exeter Academy's FY25 IRS Form 990 (covering July 1, 2024 through June 30, 2025) and have been reviewed by the data team in accordance with our editorial standards.
While Exeter spends $123,318 per student, Chicardgo School does not imply that financial expenditure mathematically causes higher placement into Ivy+, Top 25 National University, or Top 15 Liberal Arts College tiers. Rather, these financial resources fund the faculty, need-blind admissions access, and academic programming that operate alongside Exeter's historical matriculation outcomes.
Accounting Reconciliation: Form 990 standard parameters report financial aid grants ($29.2M) as an operating expense, contrasting with GAAP audited financials which net financial aid directly against gross tuition revenue.
Frequently Asked Questions: Exeter's Form 990 Financials
As of Fiscal Year 2025, Exeter's endowment stands at $1.67 billion, operating on the scale of a residential college endowment.
Exeter spends an average of $123,318 per student annually in gross regular-session program expenditures, which exceeds the $66,235 generated per student in baseline tuition and fees. Endowment distributions cover the difference.
Exeter disbursed $29.2 million in total financial aid and grants in FY25, supporting 45% of its regular-session student body.
The highest-paid employee is Principal William Rawson, who received $868,710 in total compensation in FY25.
Yes. Because federal law classifies Exeter as a secondary school rather than an institution of higher education, the academy is exempt from the federal IRC Section 4968 excise tax on net investment income.
Exeter's total assets reached $2.19 billion in fiscal year 2025.
Further Reading
High School
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