University of Michigan hired Vulcan Value Partners to manage $80 million in active domestic value equity from the $8.7 billion long-term portfolio of the Ann Arbor-based university's endowment portfolio.
University regents approved the investment based on the recommendation of Timothy P. Slottow, the university's executive vice president and chief financial officer, during a board meeting Thursday.
Regents also approved a $25 million commitment to Financial Credit Investment II, a private credit fund managed by Apollo Global Management. The fund will invest in senior life settlement investments sold primarily by banks as they deleverage non-core assets. Insurance-linked bonds that are collateralized by insurance reserves may also be used, according to Mr. Slottow's recommendation to regents.
Mr. Slottow also informed regents that the endowment's investment office committed €20 million ($27 million) to Orion European Real Estate Fund IV, which will make opportunistic real estate investments in France, Germany, Italy, Spain, Scandinavia and the U.K. The fund is managed by Orion Capital Partners.