University of Michigan sets $185 million for 3 firms

University of Michigan, Ann Arbor, committed or invested a total of $185 million to three private investment strategies from the $10.6 billion long-term portfolio of the university's endowment and from the investment pool for working capital.

Regents approved the engagement of the new investment managers at a meeting on Thursday, a requirement before UM investment staff may commit or invest with a new money manager.

Matrix Capital Management, a hedge fund manager, received a $50 investment from UM's endowment for long and short investments in U.S. publicly-traded technology companies.

UM is a long-term investor in venture capital strategies managed by sister company Matrix Partners, Mr. Hegarty said in his report, noting that the hedge fund manager's association with the allied venture capital firm provides “a strong network of entrepreneurs and industry executives that assist in the generation and due diligence of investment ideas through their deep understanding of technological trends.”

Commitments to credit specialist managers from the $1.4 billion working capital pool were $75 million to Granite State Capital Management for investment in illiquid corporate loans and $60 million to Brevet Direct Lending – Intermediate Duration Fund, including co-investments, said Kevin P. Hegarty, executive vice president and chief financial officer, in a report to regents.

Granite State Capital portfolio managers will focus on acquiring non-investment-grade U.S. and non-U.S. loans rated B or higher in the secondary market. The Brevet Capital Management fund will seek to originate, underwrite and structure private, senior-secured, asset-based loans for middle- and lower-market North American private companies.

Rick Fitzgerald, a UM spokesman, did not provide the size of the working capital pool in response to an email request.