University of Michigan, Ann Arbor, committed a total of $177 million to seven private investment funds from its $9.9 billion long-term endowment pool.
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, the meeting agenda showed.
In real estate, the endowment committed $50 million to Carmel Partners Investment Fund VI for investment in U.S. multifamily properties in markets such as Denver, Honolulu, Los Angeles and San Francisco, which are supply-constrained and have high barriers to entry.
In private equity, $30 million was committed to Advent Global Private Equity VIII, managed by Advent International. The fund will target mid- to upper-market companies in Western Europe and North America for control buyouts, minority or majority capitalizations and growth financing in sectors including business and financial services, technology, media, retail and industrial.
In distressed debt, the endowment committed $30 million to Coliseum Co-Invest Debt Fund. The fund’s manager, Coliseum Capital Management, will take larger positions in the debt instruments held by the co-investment’s companion fund, Coliseum Capital Partners.
UM’s investment team also earmarked commitments to two natural resource-focused private equity opportunities. Yorktown Energy Partners XI, managed by Yorktown Partners received a $25 million commitment for investment in a broad range of energy companies in industry subsectors such as exploration, production, transportation, marketing and manufacturing, Mr. Hegarty told regents in his report. A co-investment — Terra Energy Partners — made through the Kayne Private Energy Income Fund will receive $20 million from the endowment for the purchase of a large natural gas property in Colorado. Kayne Anderson Capital Advisors is the fund’s manager.
The university’s investment officials also committed $15 million to Accel London V, a venture capital fund that will invest in early growth-stage technology companies in Europe as well as in U.S. companies that intend to expand in Europe, according to Mr. Hegarty’s report. Earlier this year, UM split a total of $33.7 million among three other venture capital funds managed by Accel Partners: Accel XIII, Accel Growth Fund IV and Accel Leaders Fund.
Specialist early-stage health-care venture capital fund AH Bio Fund I, managed by Andreessen Horowitz, received a $7 million commitment from UM.