University of Michigan, Ann Arbor, committed a total of $122 million to five private investment funds from its $9.9 billion long-term endowment pool.
In preparation for a board of regents meeting on Thursday , 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.
It committed $50 million each to credit strategies Orion Mine Finance Fund II, managed by Orion Resource Partners, and Napier Park Strategic CLO Fund, managed by Napier Park Global Capital.
The Orion fund makes structured credit investments in the metal mining industry, targeting mid- to late-stage mining finance projects in stable regions around the world, according to Mr. Hegarty.
The Napier Park fund seeks investment opportunities arising in dislocated credit markets through the purchase of the equity and junior tranches of collateralized loan obligations in the U.S.
Also, a total of $18 million was committed to Sequoia Capital China Venture Fund VI and Sequoia Capital China Growth Fund IV; the exact amount allocated to each fund could not be learned. The funds will invest in early- and growth-stage Chinese private companies in the information technology, consumer, health care and energy/clean technology sectors.
UM also earmarked $4 million for Matrix India II Extension Fund, managed by Matrix Partners. The fund closed in April 2011 at $300 million; the extension fund was opened earlier this year and raised an additional $100 million. The fund’s managers will concentrate on investing in India-based early- and growth-stage private companies in the Internet and mobile communications, consumer products and services, education and health-care sectors, Mr. Hegarty said in his report.