University of Michigan, Ann Arbor, committed a total of $328 million to nine alternative investment funds managed by eight money managers from its $10.2 billion long-term endowment fund.
Regents of the university, who oversee investment of the endowment, approved commitments totaling $100 million to two new managers during a meeting Dec. 8.
SSG Capital Management received commitments of $35 million each to two credit funds: SSG Capital Partners IV and SSG Secured Lending Opportunities II. Each fund focuses on investment in Southeast Asian countries. Capital Partners IV will seek opportunities in structured credit instruments primarily in companies based in China, India and Indonesia. The secured lending fund will focus on investing in credit instruments with ”significant cash coupons” primarily in India, said Kevin P. Hegarty, executive vice president and chief financial officer, in a report to regents.
A second new manager for the endowment is Virtus Real Estate Capital, to which UM committed $30 million to Virtus Real Estate Capital II. The fund will seek opportunities in niche real estate sectors throughout the U.S., including student, senior and workplace housing, medical office and self storage.
Mr. Hegarty also provided information to regents about commitments totaling $228 million made by UM investment officers to six new funds offered by existing managers of the endowment.
In energy-oriented private equity funds, the endowment committed $50 million to Blue Water Energy Fund II and an additional $20 million to Kayne Anderson Energy Fund VII, managed by Kayne Anderson Capital Advisors, raising UM’s total commitment to $50 million.
UM also committed $28 million to Permira VI, an opportunistic private equity fund that invests in mid- to large-sized buyouts in companies outside Europe that the firm will help to develop a presence in European countries; and $30 million to Green Courte Real Estate Partners IV, managed by Green Courte Partners, which is focused on investments in North American niche property sectors, including parking, manufactured housing/land lease communities and senior housing.
Finally, UM committed $50 million each to Athyrium Opportunities Fund III, a venture debt managed by Athyrium Capital Management, and Lone Star Fund X, a distressed real estate debt fund managed by Lone Star Funds.