University of Michigan's investment office committed a total of $118 million to four new fund offerings from existing alternative managers out of the university's $11.2 billion long-term endowment pool.
The largest commitment was $50 million to OSP Value Fund II, a distressed debt loan fund managed by O'Brien-Staley Partners, said Kevin P. Hegarty, executive vice president and chief financial officer of the Ann Arbor-based university, in a report prepared for regents in advance of their meeting Thursday.
Endowment staff previously committed $50 million in 2015 to the previous OSP fund.
Carnelian Energy Capital Fund II was awarded $30 million for investment in North American lower-to-middle-market oil and gas companies and could provide capital to startup energy firms. The fund will focus on the upstream sector and to a lesser extent on existing midstream and oil service companies, Mr. Hegarty's report said.
UM committed $30 million in 2015 to Carnelian Energy Capital's first fund in the series.
The endowment also committed $20 million to IDG China Venture Capital Fund V for investment in early-stage Chinese companies involved in financial technology, Internet, media and enterprise applications. The endowment previously committed $50 million total to the two previous IDG Capital funds.
Vitruvian Investment Partnership III, managed by Vitruvian Partners, received a €15 million ($18 million) commitment for buyout opportunities in middle-market companies in Northern Europe.
The fund will concentrate investment in companies "where technology, regulation and internationalization can contribute to a company's long-term growth through disruption of existing markets," Mr. Hegarty wrote in his report.
UM committed €13 million to Vitruvian Investment Partnership I in 2007.
UM's investment office has authority to invest in new funds and strategies offered by existing managers without approval by the board of regents.
Separately, Mr. Hegarty informed regents that UM made a direct private equity investment of $45.6 million in Ardent Health Services, a hospital operating company.
In 2015, UM joined a consortium of investors who bought the firm from unidentified private equity manager to facilitate a merger with LHP Hospital Group, according to Mr. Hegarty's report. UM's original commitment to the Ardent investment was $74 million.
