University of Michigan, Ann Arbor, disclosed up to $280 million in alternative and absolute return commitments from its $17.9 billion long-term endowment pool, according to board documents from its board of regents meeting Thursday.
The commitments were made from October through March to seven existing fund managers and one direct investment.
The university committed up to $135 million combined to two funds managed by Cresta Fund Management, which focuses on "building infrastructure needed to support the growth of renewable energy and to mitigate, reduce or replace carbon used in essential industries," according to board documents.
The university committed $40 million to a fund managed by RF Investment Partners that invests in privately negotiated, structured credit instruments in U.S. lower middle-market companies.
UM also committed $30 million combined to two funds managed by Y Combinator, a venture capital firm that provides funding for startups throughout their lifecycle, starting at their earliest stages; $25 million to a fund managed by MaC Venture Capital that focuses on pre-seed, seed and early Series A investments in technology companies; $15 million to a fund managed by Eclipse Ventures, which invests in early-stage U.S.-based technology startups; $15 million to a fund managed by Rubicon Point Partners, a real estate firm that invests in creative office and mixed-use real estate in the San Francisco Bay area and Pacific Northwest; and $10 million to a fund managed by Hackman Capital Partners, a real estate firm that invests in global studio assets, according to board documents.
The university also made a $10 million direct private equity investment in a vehicle managed by Equity Group Investments that opportunistically invests in both public and private companies. UM invested with EGI in a company that provides end-to-end supply chain services including temperature-controlled and ambient warehousing, transportation and centralized exam services for U.S. Customs and Border Protection, the board documents said.
A UM spokesman declined to provide further details about the disclosed commitments or the Equity Group investment.
UM's investment office has authority to invest in new funds and strategies offered by existing managers, and direct investments that represent less than 1% of the endowment pool, without approval by the board.
