University of Michigan, Ann Arbor, committed a total of $130 million to three alternative investment strategies managed by existing fund managers of the institution's $11.3 billion long-term portfolio.
Napier Park Global Capital received an allocation of €46 million ($55 million) for investment in Napier Park European Loan Management Designated Activity Co. Series II, said Kevin P. Hegarty, executive vice president and chief financial officer of the Ann Arbor-based university, in a transaction report prepared for regents in advance of their upcoming meeting Thursday. UM committed $50 million in November 2015 to the predecessor fund in Napier Park's private credit fund series, which provides risk-retention capital to European managers of collaterized loan obligation securities, Mr. Hegarty said in his report. Earlier this year, UM committed $50 million to the Napier Park Strategic Loan Fund.
From the long-term portfolio's $975 million real estate portfolio, UM investment officers committed $40 million to CREA Partners II, managed by Cypress Real Estate Advisors, for investment in residential and mixed-use properties in the southeastern and southwestern U.S. states. In April 2014, UM committed up to $20 million to the first fund in the series as well as up to $10 million for co-investments associated with the fund.
A commitment of $35 million was made to Bain Capital Fund XII, a private equity fund seeking to make mid to large growth equity, leverage buyout and corporate restructuring investments primarily in North American companies. UM committed $25 million in 2013 to the previous fund in Bain Capital's North American fund series as well as $25 million in June this year to Bain Life Sciences Fund as well as to other funds managed by the firm.
UM's investment office has authority to invest in new funds and strategies offered by existing managers without approval by the board of regents, Mr. Hegarty's report said.
Separately, University of Michigan reported that its long-term portfolio returned 13.8% in the year ended June 30, compared to -1.36% a year earlier. Portfolio assets increased 12.4% to $10.9 billion in the year ended June 30.
