University of Michigan, Ann Arbor, committed a total of $40 million from its $8 billion endowment to three alternative investment funds run by existing managers, according to reports presented to UM's Board of Regents at a meeting Thursday.
Venture capital manager Telegraph Hill Partners received a commitment of $20 million to Telegraph Hill Partners III. The fund will invest in small, privately held life science, medical technology and health-care infrastructure companies. The university previously committed $15 million to an earlier fund in the company's series, according to a report by Timothy P. Slottow, the university's executive vice president and CFO, to the regents.
Endowment investment staff committed $15 million to Acadia Realty Trust's Acadia Strategic Opportunity Fund IV, which will make both opportunistic and value-added investments in domestic retail and mixed-used projects on the East Coast and in Chicago, Mr. Slottow wrote. University of Michigan committed $20 million to a previous Acadia real estate fund.
The university also committed $5 million to Green Courte Partners/The Parking Spot, a new real estate fund that acquired a 40% stake in a portfolio of parking facilities located at 12 major U.S. airports, Mr. Slottow wrote. The other 60% of the parking lot portfolio is owned by Green Courte Real Estate Partners III fund, to which UM previously committed $20 million.
Staff of the university's investment office are permitted to commit to investments in new funds managed by existing managers, said Mr. Slottow in his report.
The Board of Regents also approved a staff recommendation for a $15 million commitment to a new private equity manager, Huron Capital Partners, in its Huron Fund IV. The fund's managers will make control investments in U.S. and Canadian private, lower middle-market companies that are “fundamentally sound” but “are operating below their potential,” across a range of sectors, Mr. Slottow's report said.
