University of Michigan, Ann Arbor, announced commitments totaling $201.5 million made in late 2017 to eight alternative investment strategies managed by existing managers of the university's long-term portfolio.
UM's investment office has authority to invest in new funds and strategies offered by existing managers without approval by the board, said a report issued by Kevin P. Hegarty, executive vice president and chief financial officer of the institution's $11.3 billion long-term endowment pool.
In November, the university committed $40 million to Magna Hotel Fund VI, a real estate fund that invests in hotel properties in North America managed by Magna Hospitality Group; and $10 million to Kawadacho, a co-investment in an 816-unit residential complex in Tokyo managed by Westbrook Partners.
In December, the university committed $50 million to Kayne Anderson Energy Fund VIII and $25 million to absolute-return collateralized loan obligation fund Kayne Anderson CLO Fund I, both managed by Kayne Anderson Capital Advisors, and approximately $34 million to a co-investment opportunity provided by Summa Equity I, a private equity fund that invests in private, lower-midmarket companies in the Nordic region. "Summa Equity I offered the opportunity to co-invest in a leading Norwegian waste management and recycling company," Mr. Hegarty's report said.
The university in December also committed $25 million to Berkshire Fund IX Co-investment Fund, a co-investment fund managed by Berkshire Partners that invests in established middle-market companies with attractive growth prospects.
In venture capital, the endowment committed $15 million to AH Bio Fund II, managed by Andreessen Horowitz that invests in early stage health-care-focused information technology companies, and $2.5 million to Sequoia Capital U.S. Scout Seed Fund III, which will make seed-stage investments in promising technology companies in and around Silicon Valley.
