University of Michigan endowment commits $55 million
By Christine Williamson | October 22, 2012 12:57 pm
University of Michigan Board of Regents, approved commitments totaling $55 million to new private investment funds offered by existing managers of the $7.7 billion long-term endowment fund.
The Ann Arbor-based endowment fund committed $40 million to Sankaty Credit Opportunities V fund, which is managed by Sankaty Advisors, regents learned at their Friday meeting from a report by Timothy P. Slottow, executive vice president and CFO.
The new fund continues the manager's strategy of investing in “higher-yielding credit and special situations resulting from market dislocations and corporate distressed debt issuers,” Mr. Slottow wrote. Sankaty's portfolio managers may invest across corporate structures, regions and in public and private markets.
The investment is the university's sixth to Sankaty, having invested a total of $210 million in the firm's earlier vintage funds.
The university fund also committed $15 million to Kayne Anderson Energy Fund VI, an energy-focused private equity fund, managed by Kayne Anderson Capital Advisors, Mr. Slottow wrote in his report.
Fund VI is UM's fourth investment in the manager's energy funds, with a total of $65 million invested in earlier funds.
The new Kayne Anderson fund invests in smidcap oil and gas exploration and production companies as well as in oil and gas service firms in North America.