University of Michigan, Ann Arbor, committed a total of up to $206 million in eight alternative investment funds from its $9.8 billion long-term endowment pool.
Its sole commitment to a new manager was up to $50 million to THL Credit Direct Lending Fund III, a lower middle-market direct private debt fund.
The commitment was approved by the university’s board of regents on Thursday.
Kevin P. Hegarty, UM’s executive vice president and chief financial officer, informed the board in a report on commitments to five other managers, all made by the investment division to new funds offered by the university’s existing alternative investment managers.
The division made commitments of $50 million to middle-market private equity fund Berkshire Fund IX, managed by Berkshire Partners; a total of $37 million to three Sequoia Capital funds – U.S. Growth Fund VII, Global Growth Fund II and India V; $30 million to Kayne Anderson Energy Fund VII, which makes investments in small-cap and midcap oil and gas companies, and companies servicing those businesses, managed by Kayne Anderson Capital Advisors; $25 million to BioPharma Credit Investments IV, a private credit fund managed by Pharmakon Advisors; and £10 million ($14 million) to Moorfield Real Estate Fund II Co-Investment, a U.K. real estate fund managed by Moorfield Group.