UMich backs TCV IX for $40 mln, Matrix Partners China for $25 mln

  • University of Michigan an LP in five previous TCV funds
  • Commits $25.1 mln to pair of Matrix Partners China funds
  • Endowment values PE portfolio at $1.3 bln through February

The University of Michigan Board of Regents disclosed more than $65 million of total commitments to private equity and venture capital funds in its April 21 meeting materials.

The $9.6 billion university endowment committed $40 million to TCV IX, a growth equity fund managed by Technology Crossover Ventures.

TCV set a $2.25 billion target for its ninth flagship fund, according to a Hamilton Lane report for Teachers’ Retirement System of Louisiana, which committed as much as $50 million to the fund.

TCV IX will invest in late-stage technology companies with valuations as high as $1 billion, typically providing $75 million to $125 million of equity per deal, according to the Hamilton Lane report. The fund will invest in 20 to 30 companies.

University of Michigan is a limited partner in five previous Technology Crossover Ventures funds, including the $2.23 billion vehicle the firm closed in 2014. Fund VIII netted an 11.1 percent internal rate of return through June 30, according to the Hamilton Lane report. Fund VII, which closed on $3 billion in 2007, netted 22 percent IRR as of the same date.

Michigan also committed $25.1 million across a pair of vehicles managed by Matrix Partners China, a VC firm with offices in Beijing and Shanghai. The funds will invest in early and expansion-stage companies operating in the internet, mobile, software, consumer, financial services and healthcare sectors.

The firm is affiliated with U.S. venture firm Matrix Partners.

The University of Michigan valued its private equity portfolio at about $1.3 billion as of Feb. 29, according to endowment documents. Its venture-capital portfolio was valued at $1.4 billion on that date.

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