Firms & Funds

University of Michigan backs Silver Lake, Stripes Group

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private equity, pension fund, University of Michigan
Michigan Wolverines Head Coach Jim Harbaugh prior to the game against the Oregon State Beavers at Michigan Stadium on Sept. 12, 2015. Photo courtesy Rick Osentoski-USA Today Sports/ Reuters
  • $10.9 bln endowment backed Silver Lake for $38 mln in March
  • University of Michigan commits $35 mln to new Stripes Group fund
  • PE portfolio valued at $1.35 bln

University of Michigan committed more than $70 million across a pair of private equity funds, according to an investment disclosure released in board of regents meeting materials. Both commitments were re-ups.

The $10.9 billion endowment committed $38 million to Silver Lake’s fifth flagship fund, which closed on $15 billion in April. As with its previous flagship funds, the firm will invest in large companies operating in technology and tech-enabled industries.

Silver Lake’s previous fund, which raised $10.3 billion in 2013, was netting a 25 percent internal rate of return and 1.3x multiple through Sept. 30, according to Minnesota State Board of Investment documents. University of Michigan secured its commitment March.

University of Michigan also committed $35 million to SG Growth Partners IV, according to the investment disclosure. The endowment secured its commitment to Stripes Group in January.

Stripes Group set a $750 million target for its latest growth capital fund, a 50 percent increase from the $500 million fund it closed in 2014. The fund will invest in technology-enabled and branded consumer-product companies, focusing specifically on businesses that are in e-commerce, digital media, data services, software-as-a-service and marketplace companies, the University of Michigan document shows.

University of Michigan held around 12.4 percent of its assets, or $1.35 billion, in private equity as of March 31. Its venture capital portfolio was valued at $1.4 billion as of the same date.

Action Item: For more information about University of Michigan, visit www.regents.umich.edu