U Mich Pledges To Asia Fund, Exceeds Target

The University of Michigan recently pledged $10 million to the fourth fund of Hong Kong-based SAIF Partners, even as the investor’s actual allocation to private equity exceeded its target.

The University of Michigan’s model portfolio weight to private equity is 12 percent of its $6.2 billion portfolio. Its actual allocation was 15.5 percent as of February, according to a spokesperson.

Its latest commitment continues a run of pledges to international funds. Last year, the university committed $32 million to London-based private equity firm Charterhouse Capital for investments in the United Kingdom and France; $14 million to London-based Close Brothers Private Equity for buyouts of mid-market companies in the United Kingdom; and $15 million to Kayne Anderson Capital Advisors, an energy specialist based in Los Angeles.

From its commitment to SAIF Partners IV, the University of Michigan will gain exposure to investments of $10 million to $100 million in growth equity opportunities and buyouts in Greater China and India. The university is in august company: New York State Common Retirement Fund recently committed $100 million to the fund, and the California Public Employees’ Retirement System recently pledged $120 million.

SAIF Partners, which has offices in Hong Kong and Beijing, China, as well as in Hyderabad, India, plans to invest mainly in expansion-stage, established businesses in China and India that, for the most part, have positive revenue growth, generate positive cash flow, and provide sought-after goods and services in rapidly growing domestic markets, according to a board document. Industries of interest include ones benefiting from rapidly rising local consumption, including financial services, retail and distribution, health care, agribusiness, education and business services