University of Michigan, Ann Arbor, committed up to $35 million to two alternative funds new to the institution's $12.3 billion long-term endowment pool.
University regents approved the investment recommendations of Kevin P. Hegarty, executive vice president and the chief financial officer, at a meeting Thursday, board documents show.
The university also disclosed $178 million in alternative and absolute-return commitments, according to board documents.
A $25 million commitment Thursday was made to Star Asia Japan Special Situations V, which invests in private real estate and real estate related assets in Japan and is managed by Star Asia Group.
A commitment of up to $10 million was made to MaC Venture Capital 2019, a "newly formed generalist venture capital fund" that plans to invest in early stage companies that leverage technology to capture generational shifts in consumer habits and business models, according to board documents.
The disclosed commitments were made January through March. UM's investment office has authority to invest in new funds and strategies offered by existing managers without board approval, board documents show.
In alternatives, the university committed $50 million to venture capital fund 8VC Fund III and $40 million to Coliseum Capital Co-invest III, managed by Coliseum Capital Management, to invest in the micro- and small-cap space sectors primarily in the United States.
In absolute return, UM committed $30 million to Firmament Capital Partners SBIC III, a credit fund that invests in privately negotiated, structured credit instruments primarily of non-sponsored U.S.-based companies with $10 to $40 million in revenues and is managed by The Firmament Group; €25 million ($28 million) to Apera Private Debt Fund II, a European debt fund managed by Apera Asset Management; $20 million to Napier Park Strategic CLO Fund Credit, a limited partnership managed by Napier Park Global Capital; and $10 million to KAFRG Investors, a co-investment fund that provides financing for a company to support its acquisition and refinance the company's existing debt and is managed by Kayne Anderson Capital Advisors .
