University of Michigan regents on Thursday approved a commitment of up to $50 million from the school's $11.2 billion endowment to Blue Water Aggregates Fund, meeting documents showed.
The natural resources fund, managed by BWW Group, will acquire high-quality rock quarries, sand mines and gravel pits primarily in the southeastern U.S. These properties produce aggregate materials used in making ready-made concrete and asphalt for construction and infrastructure projects, said Kevin P. Hegarty, executive vice president and chief financial officer of the Ann Arbor-based university, in an investment recommendation report for the regents.
"The highly fragmented nature of the aggregates industry provides for significant acquisition and consolidation opportunities in a market with resilient pricing power and favorable supply and demand dynamics," Mr. Hegarty wrote.
The commitment is UM's first to BWW Group.