Searches and Hires

University of Michigan earmarks $154 million for alternatives

University of Michigan, Ann Arbor, committed a total of roughly $154 million to three alternative investment funds new to the institution's $11.3 billion long-term endowment pool and disclosed $203.6 million in commitments to existing managers.

A commitment of €60 million ($74 million) was awarded to Apera Capital Private Debt Fund I, a private pan-European midmarket debt fund.

The endowment also committed up to $50 million to Eclipse Fund III and up to $30 million to Eclipse SPV I, two venture capital funds managed by Eclipse Ventures.

University regents approved the investment recommendations of Kevin P. Hegarty, executive vice president and the chief financial officer, at a meeting Thursday, board documents showed.

In addition, the university also announced commitments of $203.6 million for follow-on investments made in 2017 to seven alternative investment strategies managed by existing managers of the university's long-term portfolio. UM's investment office has authority to invest in new funds and strategies offered by existing managers without approval by the board, Mr. Hegarty's report said.

In September, the university committed $50 million to Sterling Value Add Partners III, a retail real estate fund managed by Sterling Organization. In October, it committed 25 million ($32 million) to Moorfield Real Estate Fund IV, a U.K. real estate fund managed by Moorfield Group.

Commitments of $28 million and $15 million were made in October to China-focused venture capital funds GSR Ventures VI and GSR 2017 Opportunities Fund, respectively. The funds "will make early stage venture capital investments in companies with substantial operations in China," according to Mr. Hegarty's report.

In May, the institution committed $25 million to Kian Mezzanine Partners II, a credit fund managed by Kian Capital that will invest in privately negotiated, structured credit instruments in lower-middle-market companies in the Southeastern U.S. In March 2018, it committed $12 million to a Kian Capital unleveraged separate account.

The endowment in June committed $25 million to RF Investment Partners SBIC I and in November committed $12 million to an unleveraged separate account managed by RF Investment Management Co. SBIC I is a credit fund that will invest in privately negotiated, structured credit instruments in lower-middle-market companies east of the Rocky Mountains.

In November, the university committed $4.6 million to the Buckstin co-investment offered by Magna Hotel Fund V, a Magna Hospitality Group real estate fund that focuses on limited service hotels in major U.S. urban markets.