University of Kentucky earmarks $128 million for alternatives

University of Kentucky, Lexington, allocated $128 million total to seven managers on behalf of its roughly $1.2 billion endowment, said Todd Shupp, chief investment officer, in an email.

The investment staff hired Harvest Fund Advisors to manage $43 million in master limited partnerships. Funding will come from a temporary passive MLP holding, Mr. Shupp wrote. Further information was not provided.

A total of $85 million was also committed or invested in six funds:

The allocation sizes and funds are:

  • $15 million to Merit Mezzanine Fund VI, a private credit fund managed by Merit Capital Partners;
  • $15 million in Firefly Value Partners Overseas, a hedge fund;
  • $15 million in Coastland Relative Value Fund, a hedge fund managed by Coastland Capital;
  • $15 million in LibreMax Offshore Fund, a hedge fund managed by LibreMax Capital;
  • $13 million in Highfields Capital; a hedge fund managed by Highfields Capital Management; and
  • $12 million in Kepos Alpha Fund; a hedge fund managed by Kepos Capital.

The investment staff also redeemed its full $10.7 million and $2.8 million investments, respectively, in Quissett Partners and Spindrift Partners, both hedge funds managed by Wellington Management.

The redemptions were related to a reduction in the endowment's hedged equity target to 5% from 14% previously, which was approved late last year.