University of Michigan, Ann Arbor, committed a total of $88 million to six alternative investment funds from its $9.4 billion endowment.
University regents approved a $10 million commitment to a new venture capital manager, Mosaic Ventures, for its eponymous first fund at their board meeting on Thursday.
Mosaic Ventures will invest in early stage technology companies in Europe, mostly in Germany, the U.K. and Scandinavia, said Timothy P. Slottow, the university's executive vice president and chief financial officer, in an investment recommendation to the Board of Regents.
Also approved by the regents was a £15 million ($26 million) commitment to Primary IV, run by a new manager for the endowment, Primary Capital. The fund will focus on investing in private lower-middle-market companies domiciled or with substantial operations in the U.K. in sectors including consumer goods and services, technology and software, and industrial products and services, Mr. Slottow's recommendation stated.
At every regents meeting, Mr. Slottow informs the board about commitments to follow-on funds offered by existing managers that the investment staff is permitted to make without regents approval.
In venture capital, the endowment's investment staff made a total commitment of $22 million to Andreessen Horowitz's Fund IV and Parallel Fund IV. The companion funds will invest in technology companies “across the spectrum of seed, venture- and growth-stage opportunities,” Mr. Slottow's report said. Andreessen Horowitz Fund IV will invest in both early and later-stage companies, while Andreessen Horowitz Parallel Fund IV mostly will focus on later-stage opportunities.
Lone Star Funds, an existing UM private equity manager, received a $30 million commitment for Lone Star Partners IX, which will invest globally in distressed residential mortgages, corporate debt and securitized loans, Mr. Slottow's report said.