It’s a simple formula (ALDC), really, as the New York Times explains:

Harvard gives advantages to recruited athletes (A’s); legacies (L’s), or the children of Harvard graduates; applicants on the dean’s or director’s interest list (D’s), which often include the children of very wealthy donors and prominent people, mostly white; and the children (C’s) of faculty and staff. ALDCs make up only about 5 percent of applicants but 30 percent of admitted students.

While being an A.L.D.C. helps — their acceptance rate is about 45 percent, compared with 4.5 to 5 percent for the rest of the pool — it is no guarantee. (One of those rejected despite being a legacy was the judge in the federal case, Allison D. Burroughs. She went to Middlebury College instead.)

Harvard’s witnesses said it was important to preserve the legacy advantage because it encourages alumni to give their time, expertise and money to the university.

Which is how you get to have a hedge fund with a nice university attached.