University of Michigan, Ann Arbor, committed or invested a total of $274 million from its $8 billion endowment to nine alternative investments and two long-only international equity managers, according to recent board of regents meeting reports.
Regents approved the hiring of Highclere International Investors to manage $75 million in active international smidcap equity and allocated $50 million to Polunin Capital Partners to run in active emerging markets and frontier markets equity, according to meeting documents.
Two energy-related co-investments with existing private equity managers also were approved.
Canyon Midstream Partners, a portfolio company being funded by Kayne Anderson Energy Partners, received a $10 million commitment. UM's prior commitments to Kayne Anderson totaled $80 million.
UM committed $5 million to Modern Resources, a startup company receiving funding from ARC Energy Fund 7, to which UM previously committed $19.4 million. Prior commitments to ARC Financial funds total C$50 million (US$49.1 million), including the seventh fund in the series.
Timothy P. Slottow, executive vice president and chief financial officer, reported staff made the following commitments to alternative investments:
- In private equity, UM committed $30 million to Silver Lake Partners IV; $25 million to Morgan Stanley Private Equity Asia IV; and C$20 million to JOG LP No. VI. Prior commitments to Silver Lake funds totaled $80 million; Morgan Stanley, $40 million; and JOG Capital, C$40 million;
- Venture capital funds Sequoia Capital U.S. Venture Fund XIV and Sequoia Capital China Venture Fund IV received commitments of $5 million and $4 million, respectively. The institution previously committed a total of $117 million to 11 earlier Sequoia Capital funds;
- Investment staff committed $30 million to distressed debt fund GSO Capital Solutions Fund II, having previously committed an aggregate $110 million to other GSO Capital Partners' funds; and
- In real estate, $20 million was promised to Crow Holdings Realty Partners VI. A total of $150 million was committed to prior Crow Holdings funds.