University of Michigan, Ann Arbor, committed a total of about $125 million to eight private investment funds from its $9.6 billion long-term endowment pool and its investment pool for working capital.
In preparation for a meeting Thursday of the board of regents, Kevin P. Hegarty, executive vice president and chief financial officer, announced the commitments to some of the fund’s existing managers made by the university’s investment office, board documents showed.
In private equity, $50 million was earmarked for Dyal Capital Partners III, which is owned by Neuberger Berman.
Related Co.’s RFM UM PE fund received a $30 million commitment to provide preferred equity capital to sponsors and operators of multifamily real estate, Mr. Hegarty said in his report.
A total of $33.7 million was split among three venture capital funds managed by Accel Partners: Accel XIII; Accel Growth Fund IV; and Accel Leaders Fund. Mr. Hegarty told regents in his report that the growth and leaders funds will follow a similar strategy to their companion fund, Accel XIII, but will invest in larger transactions with later-growth-stage companies.
UM committed $10 million to St. John’s Center, a real estate co-investment with Westbrook Partners. The fund will invest in a redevelopment project along the Hudson River in New York.
Also, the university committed less than $1 million each to two managers — SCF Partners’ SCF Fund VII (A), which provides more money for investments in energy services and equipment sectors by SCF Fund VII; and ARC Financial Corp.’s Modern Resources, a co-investment with ARC Fund 7.
