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University of Michigan backs Graham Partners, White Rock

  • $10 bln endowment also commits to GSR and Deerfield
  • Graham III nets an 18 pct IRR through June
  • Endowment has 12.9 pct allocation to PE

University of Michigan Board of Regentscommitted more than $100 million across four private equity and venture capital funds in July, according to an investment memo included in its December 17 meeting materials.

The largest of its commitments went to Graham Partners IV, which is managed by the industrial and manufacturing sector specialist Graham Partners. University of Michigan’s $40 million re-up to Fund IV is $10 million more than the endowment committed to Graham Partners’ third fund.

Graham Partners III, a 2008 vintage fund that closed on $650 million, generated an 18 percent internal rate of return as of June 30, 2015, according to the data provider Bison.

It is not clear what the firm is targeting for Fund IV. Graham Partners did not respond to a request for comment.

University of Michigan also committed $20 million to White Rock Oil & Gas’ second fund, which is targeting $300 million for investments in oil and gas producing properties in the U.S. The firm raised $125 million through its previous fund in 2013.

Finally, University of Michigan made a pair of commitments to venture capital funds in July, according to the December memo. The endowment allocated $30 million to Deerfield Healthcare Innovations Fund, which is managed by Deerfield Management Company. The $550 million fund, which held a final close in July, invests in therapeutics, devices, diagnostics, medical services and animal health.

The university also committed $15 million to Beijing-based GSR Ventures’ GSR Ventures V, which is targeting $150 million for investments in the e-commerce, financial technology, online advertising, big data, mobile gaming and education sectors.

The $10 billion University of Michigan endowment has a 12.9 percent allocation to private equity and values its portfolio at approximately $1.3 billion. The endowment has a separate allocation to venture capital valued at $1.4 billion.

Action Item: See more information on University of Michigan’s most recent commitments here: http://bit.ly/1ZcskNe.