(updated with correction)
University of Michigan, Ann Arbor, committed a total of up to $159 million to five co-investment opportunities and alternative investment funds from its $9 billion endowment.
University regents approved two co-investments with existing managers at their March meeting.
Up to $10 million was approved for a co-investment offered by Equity International Properties through its Equity International Real Estate Fund V, to which UM previously committed $40 million, according to a report from Timothy P. Slottow, executive vice president and chief financial officer. Together with Terranum Hotels, a Bogota, Colombia-based hospitality company, Equity International's co-investment will acquire Decameron, a Latin American hotel and resort company.
Also approved was a C$4 million (US$3.6 million) co-investment to Aspenleaf Energy, a portfolio company of ARC Energy Fund 7, managed by ARC Financial. Aspenleaf will focus on buying and developing oil-related companies in western Canada, Mr. Slottow said in his report. The university has invested or committed to ARC Energy Funds 5, 6 and 7, but the total of the previous commitments was not provided.
UM regents also approved a commitment of $30 million to Deerfield Private Design Fund III, the university's first investment in a fund managed by Deerfield Management. The private equity fund provides alternative financing options to health-care companies, Mr. Slottow's investment report said.
Separately, Mr. Slottow informed regents about commitments to follow-on funds offered by existing money managers that the investment staff is permitted to make without regent approval.
MHR Institutional Partners IV, a distressed debt fund that invests in troubled North American middle-market companies, received a $75 million commitment from UM, according to meeting documents. The fund is managed by MHR Fund Management.
Investment staff also committed $40 million to Odyssey Investment Partners Fund V, a buyout fund that looks for middle-market companies in industrial and business services sectors. Mr. Slottow's report said the fund's investment team has “particular experience” with investing in areas such as aerospace, distribution, equipment rental, insurance and supply chain management.
