University of Michigan, Ann Arbor, committed a total of up to $125 million to six alternative investment funds.
In private equity, the $9.8 billion UM endowment committed $35 million to Francisco Partners IV; $25 million to Advent Latin American Private Equity Fund VI, managed by Advent International; and $5 million to Dyal Columbus Co-Investment Partners, managed by Dyal Capital Partners, the private equity unit of Neuberger Berman.
Also, $30 million was committed to MAP 2015, an energy fund that acquires royalty interests “associated with large, long-life natural gas fields and renewable energy projects,” said Douglas L. Strong, interim executive vice president and chief financial officer of the university, in a report presented to UM’s board of regents at its Thursday meeting. The U.S.-focused fund is managed by Map Royalty.
At every regents meeting, the university’s CFO informs the board about commitments the investment staff has made to new funds using the same strategy that are offered by existing managers. Regents’ approval is not needed for these commitments.
Regents approved a recommendation from Mr. Strong and the endowment management team to commit up to $30 million to CVC Growth Partners and a companion co-investment fund, both managed by CVC Capital Partners, a new manager for the endowment fund.
The funds will invest in small, growth-oriented technology companies “where the investment team has prior experience, including software as a service, infrastructure, payments and technology-enabled business services,” Mr. Strong’s report said.
