The University of Alabama System’s investment committee approved a commitment of $20 million and terminated its investment with Southeastern Asset Management for its $2.5 billion pooled endowment fund.
At its Feb. 6 meeting, the Tuscaloosa-based university's investment committee approved a $20 million commitment to SRE Opportunity Fund V, a buyout fund managed by Singerman Real Estate. The investment committee previously made commitments to funds II, III and IV, according to Nolan Bean — CIO and head of portfolio management at Fund Evaluation Group, the system's investment consultant — who spoke at the meeting.
The commitment falls within private real assets, which makes up about 30% of the portfolio, according to a webcast of the meeting.
Within public equity, the committee terminated its investment in the Southeastern Global Equity Fund, a fund managed by Southeastern Asset Management, and reinvested the proceeds in the Northern Trust ACWI IMI Fund.
The University of Alabama System had been invested with Southeastern Asset Management since 2002, according to Bean, “but as we think about the portfolio construction, we've come to the decision. ... It’s time for us to redeploy that capital.”
“We appreciate all the hard work that Southeastern has done for us for over two decades but believe this is the right move for the portfolio,” Bean added.
Southeastern Asset Management declined to comment.
