University of Michigan, Ann Arbor, committed a total of $150 million to four new and one existing alternative investment funds run by existing managers from its $10.6 billion long-term endowment portfolio.
Two venture capital funds received an aggregate $69 million of commitments with $50 million going to Deerfield Private Design Fund IV, managed by Deerfield Management, to provide financing to public and private health-care companies, said Kevin P. Hegarty, executive vice president and chief financial officer, in a report to regents in advance of their Thursday meeting.
HealthCap Venture Capital's HealthCap VII fund received an additional commitment of $5 million in November for a total investment of $19 million. The fund seeks investments in Western European and, to a lesser extent, North American life-science and health-care firms.
In private equity, $25 million was earmarked for Huron Capital V, managed by Huron Capital Partners, for investment in lower middle-market private companies in the Southeast and Midwest that are fundamentally sound, but operating below their potential, Mr. Hegarty's report said.
Francisco Partners' Agility Fund was allotted $20 million to seek investment opportunities in smaller technology and technology-related firms in the U.S., Europe and selectively in Europe. The Agility Fund complements Francisco Partners' larger technology-focused funds.
Finally, in real estate, Mr. Hegarty said in his report that UM investment officers committed $50 million to LBA Realty Fund VI, investing in office and industrial properties in the western U.S.
UM investment officers may make additional commitments to funds run by existing managers of the endowment.
