University of Alabama System's investment committee approved a commitment of $20 million to Yukon Capital Partners V, a mezzanine fund managed by Yukon Partners, and terminated Indaba Capital Management from its diversifying strategies portfolio.
The commitment and termination were approved at the committee's Nov. 2 meeting, according to a webcast of the meeting.
"Indaba really didn't fit into (the diversifying strategies) portfolio anymore," though Indaba has been a great partner, said Nolan Bean, CIO and head of portfolio management at Fund Evaluation Group, the system's investment consultant, at the meeting. The system plans to redistribute the Indaba assets to existing managers within the asset class.
Bean also said the system has a good working relationship with Yukon Partners, as it has invested in the manager's three prior funds. Yukon Capital Partners V falls within private credit, for which the university endowment has a 3% allocation target.
The Tuscaloosa-based system oversaw $5.8 billion in assets as of Aug. 30, which includes the pooled endowment fund, and a liquidity and capital reserve pool.