University of Michigan, Ann Arbor, announced commitments totaling $286 million made earlier in the year to six new alternative investment funds managed by existing managers of the university's $12.2 billion long-term portfolio.
The investments were disclosed at the regents' board meeting Thursday, board documents showed.
In April, the university committed $100 million to Granite State Capital Partners II, a credit fund managed by Granite State Capital Management that invests in illiquid corporate bank loans at a discount; $75 million to Kayne Private Energy Income Fund II, a natural resources fund managed by Kayne Anderson Capital Advisors.
Also in April, UM committed $50 million to Grey Rock Energy Fund III, a natural resources fund managed by Grey Rock Energy Partners; and $25 million to Enlightenment Capital Solutions SBIC Fund, a credit fund that invests in privately negotiated, structured credit instruments in lower-middle-market U.S. aerospace, government and defense companies.
In May, the university made a commitment of $26 million to Lime Rock Partners IV AF, a restructuring of energy fund Lime Rock Partners IV that invests in one asset: Crown Rock Resources, a joint venture between Lime Rock and CrownQuest Operating; and $10 million to SSC-SAFI, a real estate fund managed by Spear Street Capital.
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 from Kevin P. Hegarty, executive vice president and chief financial officer.
