University of Michigan, Ann Arbor, committed a total of $73 million from the university's $8.5 billion long-term endowment pool to four alternative investment funds.
Regents approved a $20 million investment in Catalyst Fund LP IV during their meeting on Thursday. Managed by Catalyst Capital Group, the fund will invest in the debt of distressed Canadian companies. The commitment is from the endowment's absolute-return allocation.
“Catalyst creates value by restructuring their target companies' balance sheets in the bankruptcy process and by developing and implementing a plan to improve … operations,” wrote Timothy P. Slottow, the university's executive vice president and chief financial officer, in a report to the regents.
Also approved for a $15 commitment was Trilantic Capital Partners V (North America), a private equity fund that will invest in North American middle-market companies with good growth prospects, Mr. Slottow explained in his report.
Separately, Mr. Slottow reported investment staff committed $7.5 million earlier this year to Accel London IV. The U.K.-based venture capital fund, managed by Accel Partners, will focus on investment in early and growth-stage technology companies in Europe and Israel, and in U.S. companies expanding into Europe.
A $30 million commitment was made to Coliseum Capital Co-Invest, which is being formed by Coliseum Capital Management, a value-oriented public equity specialist. The co-investment fund is designed to take larger investments in companies held within the firm's main fund, Coliseum Capital Partners, and for which Coliseum holds a board seat, according to meeting materials.
