University of Michigan, Ann Arbor, committed $93 million total to four alternatives funds on behalf of its $9.6 billion long-term endowment pool, said materials prepared for Thursday's board meeting.
In absolute return, UM's investment office committed $50 million to Sankaty Credit Opportunities VI, a fund that invests in multiple credit strategies including distressed debt and direct lending and is managed by Bain Capital Credit, formerly known as Sankaty Advisors.
In venture capital, UM committed $14 million and $7 million, respectively, to Battery Ventures XI and Battery Ventures XI Side Fund. The funds will invest in technology companies in all stages of growth, particularly in the software, e-commerce, infrastructure, Internet and digital media, and industrial technologies sectors. The side fund will co-invest in later-stage Battery Ventures XI transactions.
The investment office also committed an additional $22.02 million to Chengwei Capital's Ventures Evergreen Fund, a fund that will invest in Chinese companies that provide goods and services to the Chinese economy and have significant growth potential, according to the meeting materials. The investment office previously committed $20 million to the fund with an additional $10 million on a “standby basis” in 2012, according to earlier meeting materials.
UM has previously committed to other Battery Ventures, Sankaty Advisors and Chengwei Capital funds.
