University of Houston System committed $7.5 million to health-care venture capital fund SV Life Sciences Fund VI on behalf of its roughly $610 million endowment.
It is the system's first commitment to an SV Life Sciences fund.
Also, the university plans to redeem its roughly $11.1 million investment in York Institutional Partners on behalf of the endowment. The multistrategy hedge fund is managed by York Capital Management.
A desire to build an overweight to long/short equity managers and to invest with smaller, more nimble managers were cited as reasons for the redemption, according to a webcast of Thursday's endowment management committee meeting.
York Institutional Partners has been “a successful investment,” investment staff noted at the meeting. The targeted redemption date is Dec. 31.
Investment consultant Cambridge Associates assisted.
The endowment has a 25% and 20% target to private equity and hedge funds, respectively, said Raymond Bartlett, associate vice chancellor for finance, in an e-mail.