The board of University of Texas Investment Management Co., Austin, approved a $20 million commitment to Underscore VC Fund I from the University of Texas System's $17.5 billion Permanent University Fund and $7.3 billion Long Term Fund, which it oversees.
The decision was made by the board of directors at an Aug. 23 meeting, said Amanda Hopper, UTIMCO's senior director, public markets, in an e-mail.
The fund, managed by _Underscore.VC, will focus investments in early-stage North American companies providing cloud intelligence services.
UTIMCO director Ray Rothrock recused himself from discussing or voting on the investment recommendation because he is an investor in the fund, according to agenda materials for the meeting.
The board also approved the addition of the Dreyfus Institutional Preferred Government Money Market Fund as a cash account for the UT System's Short Term Fund, which totaled $1.6 billion as of July 31.
Separately, the UT Board of Regents accepted UTIMCO's recommended investment target changes for the Permanent University Fund at its meeting Aug. 24-25, Ms. Hopper said.
The new target allocations, effective Sept. 1, the start of UT's fiscal year, are 39% to more correlated and constrained strategies; 25% to less correlated and constrained approaches; and 36% to private investments.