INVESTING/PORTFOLIO STRATEGIES

University of Michigan to start venture capital fund

University of Michigan Board of Regents approved the creation of an internally managed venture capital fund — Michigan Investment in New Technology Startups — within the $7.8 billion long-term endowment fund.

The new fund will invest an estimated $25 million over 10 years in new companies utilizing intellectual property licensed through the Ann Arbor-based University of Michigan's Office of Technology Transfer, according to meeting materials for the regents' Dec. 15 meeting. The MINTS fund will be managed jointly by university's investment office, which also manages the endowment, and the Office of Technology Transfer.

Regents also approved a commitment of $50 million to Dyal Capital Partners, a private equity fund managed by a subsidiary of Neuberger Berman, which will purchase minority ownership stakes in alternative investment managers.

Investment staff informed the regents of commitments made over the summer to the following funds: $7 million to GSR Ventures IV, a China-focused venture capital fund, and $35 million to Patron Capital LP IV, a European-focused opportunistic real estate fund. UM's endowment previously committed $41 million to prior GSR funds and $105 million to earlier Patron funds, according to the report made to the board.

Neither L. Erik Lundberg, chief investment officer, nor Timothy P. Slottow, executive vice president and CFO, could be reached for comment because the university is closed for the holidays.