University of Michigan's investment office committed a total of $150 million to five alternative investment strategies from the university's $11.1 billion long-term endowment pool.
The largest commitment was $50 million to Lime Rock Partners VIII, a private equity fund that will primarily invest in exploration, production and oil field services companies, said Kevin P. Hegarty, executive vice president and chief financial officer of the Ann Arbor-based university, in a report prepared for regents in advance of their meeting Thursday.
Endowment staff previously committed to the six previous Lime Rock funds, beginning in 2002.
Metric Capital Partners Private Capital Fund III was allocated €40 million ($47.5 million) for direct lending to European middle-market companies, Mr. Hegarty's report showed. UM committed €30 million to the second fund in 2014.
Corbel Capital Partners SBIC was awarded a $35 million commitment for investment in privately negotiated structured credit in lower-middle-market U.S. companies. Information about previous commitments from the UM endowment to Corbel Capital Partners could not be learned.
The investment office also committed €10 million to BTC Ocho, a co-investment in conjunction with Black Toro Capital Fund II. Mr. Hegarty said in his report that the co-investment fund will acquire two Spanish ice cream manufacturers, provide refinancing and consolidate the companies. UM committed €44 million to Black Toro Capital Fund II in 2015.
Also, an additional £4.4 million ($5.7 million) was earmarked for Moorfield Audley Real Estate Fund on top of £10 million committed by UM to the fund in 2016. The fund focuses on acquiring retirement communities in the U.K., Mr. Hegarty's report said. In 2007, UM committed £15 million in Moorfield Audley Real Estate Fund II, the predecessor to the latest fund from the London-based firm. Moorfield Audley Real Estate Fund was "established in 2016 to acquire Audley Retirement Villages, a retirement home company, the last remaining asset in Moorfield Audley Real Estate Fund II. Capital raised in 2015 was to acquire the company and continue its growth. The pipeline has been robust and Audley has identified attractive opportunities which exceed the initial fundraise. As a result, Moorfield Audley is raising additional capital," Mr. Hegarty's report said.
UM's investment office has authority to invest in new funds and strategies offered by existing managers without approval by the board of regents.