University of Chicago sells research center to Morningstar for $375 million

In a significant development for financial research, the University of Chicago has made the decision to sell its Center for Research in Security Prices (CRSP) to the investment firm Morningstar for a substantial $375 million. Established over 65 years ago at what is now the Booth School of Business, CRSP is well-regarded for its provision of historical financial market data and investable stock indices, which are crucial for both academic research and practical investment strategies. The center has played a vital role in economic scholarship, emphasizing the rigorous use of data to unlock insights into market behavior. The decision to sell CRSP came amid a larger context of financial challenges faced by the university, characterized by a prolonged budget deficit that has persisted for nearly a decade. As the university's board considered the future prospects of CRSP and the potential for expansion and commercialization under new ownership, they ultimately determined that selling to Morningstar was a prudent strategy. This transition is expected to enable CRSP to leverage Morningstar's vast resources and expertise in financial data analysis and investment. In a statement regarding the sale, Madhav Rajan, who serves as both the dean of Chicago Booth and the chair of CRSP's Board of Directors, reflected on CRSP's contributions to economic scholarship. He noted that continuing research at the university will build upon the vital body of work established by CRSP. Furthermore, even after the sale, the University of Chicago will maintain access to CRSP's extensive data, ensuring a continued relationship between the two entities moving forward. The proceeds from this sale are earmarked for long-term support of research and education within the university. The sale not only represents a strategic move to enhance the financial standing of UChicago but also suggests a broader trend in the relationship between academic institutions and commercial entities within the realm of financial research. As both parties embark on this new chapter, the deal sets the stage for a pioneering partnership in data-informed investment strategies that may drive future advancements in this field.