University of Michigan, Ann Arbor, invested or committed a total of $302 million in nine investment strategies from its $9.8 billion long-term endowment pool.
University regents approved investments totaling $175 million with three new money managers, according to materials from a board meeting Thursday.
Goodhart Partners was hired to manage $75 million in its active small-cap Japanese equity strategy, said Kevin P. Hegarty, executive vice president and chief financial officer, in a meeting report.
Additionally, regents approved commitments of $50 million each to Napier Park Europe Loan Management Designated Activity Co., managed by Napier Park Global Capital, which will provide financing to European collateralized debt obligation managers, and to Ecosystem Investment Partners III. The natural resources-focused fund will sell land-based environmental offsets to developers who need to mitigate destruction of natural areas, streams or wetlands.
Mr. Hegarty also reported to regents about six commitments totaling $127 million made by the investment division to new funds offered by existing alternative investment managers.
In private equity, it committed a total of $45 million to TA XII and its companion fund, TA Subordinated Debt Fund IV, both managed by TA Associates. TA XII is focused on investments in North American middle-market growth companies; the TA subordinated debt fund will invest alongside TA XII, “providing subordinated debt with attached equity rights,” Mr. Hegarty said in his report.
A total of $30 million was committed to companion funds Flexpoint Fund III and Flexpoint Special Assets Fund. Manager Flexpoint Ford's Fund III will invest in middle-market health-care and financial services companies, while the specialty fund will invest in financial assets such as loans, leases and books of real estate, Mr. Hegarty said in meeting documents.
In real estate, the endowment committed $27 million to Niam Nordic VI, which invests in real estate properties in the Nordic region, while $25 million was committed to KHP Fund IV, managed by KHP Capital Partners. The fund will acquire, renovate and operate boutique hotels in major North American markets. KHP Capital Partners is the successor fund management company of Kimpton Hotels & Restaurants Group, Mr. Hegarty said in his report.