University of Michigan, Ann Arbor, disclosed $130 million in alternatives and absolute-return commitments from its $12.9 billion long-term endowment pool ahead of its Thursday board of regents meeting.
The commitments were made in June to four existing fund managers. UM's investment office has authority to invest in new funds and strategies offered by existing managers without approval by the board.
In absolute return, the university committed $40 million to OSP Value Fund III, a private credit fund managed by O'Brien-Staley Partners.
In alternatives, UM committed €40 million ($45 million) to FSN Capital VI, a Nordic region buyout fund.
UM also committed a total of $30 million to two funds managed by venture capital firm Y Combinator. A university spokesman could not immediately be reached to provide more information about the commitments. In 2017, UM committed a total of $100 million to Y Combinator Continuity Affiliates Fund II and Y Combinator Continuity Affiliates Fund III, which invest in seed-stage, early growth-stage and later-stage growth companies.
Finally, UM also made a $15 million follow-on commitment to Summa Co-Investment (No. 1) AB. In 2017, UM made a $34 million commitment to the co-investment fund managed by Summa Equity after it had committed $38 million in 2016 to Summa Equity I, a private equity fund that invests in private, lower-midmarket companies in the Nordic region. Separately, the university had committed $50 million to Summa Equity II, a fund with the same strategy, in late 2018.
