Searches and Hires

University of Michigan earmarks $120 million for fund, discloses $157 million in earlier commitments

University of Michigan, Ann Arbor, committed $120 million to an alternative investment fund new to the institution's $12 billion long-term endowment pool.

The commitment was awarded to Hampden Insurance Partners, a fund managed by Hampden Capital that provides capital to insurers.

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

In addition, the university also announced commitments totaling $157 million made earlier in the year to five new alternative investment strategies funds 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 March, the university committed $50 million apiece to Turner Healthcare Facilities Fund, a real estate fund managed by Turner Impact Capital that invests in and develops medical facilities; and PetroCap Partners III, a natural resources fund.

Also in March, the endowment committed $30 million to MAP RE 2018, an income-oriented energy fund managed by MAP Energy; and $17 million to SCF IX, a natural resources fund managed by SCF Partners.

In April, the university committed $10 million to TI Platform Fund II, a fund-of-funds managed by Trusted Insight that invests in emerging venture capital funds.

Separately, the endowment announced a follow-on commitment and a direct investment.

First, the endowment increased its commitment to RF Investment Partners SBIC I, a credit fund that will invest in privately negotiated, structured credit instruments in lower-middle-market companies east of the Rocky Mountains, to $35.93 million in August from $25 million in June 2017.

In addition, in February, the institution made a direct private equity investment of $30.4 million in Ardent Health Services, a hospital operating company.