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University of Michigan bets another $117 mln on PE, venture

  • Kayne Anderson, Berkshire funds among commitments
  • University of Michigan also re-ups to Sequoia
  • Roughly $2.7 bln of the university endowment is in PE, VC

The University of Michigan Board of Regents disclosed $117 million of new commitments to private equity and venture capital.

The university’s $9.6 billion endowment committed $50 million to Berkshire Fund IX in December, according to its March 17 meeting materials. Berkshire Partners set a $5.5 billion target for its new generalist fund, which will use an array of deal structures to invest in middle-market companies.

Fund IX’s portfolio will consist primarily of U.S. businesses, though it may pursue deals outside the country on an opportunistic basis, according to a University of Michigan investment memo.

The University of Michigan also committed $30 million to Kayne Anderson Capital Advisors’ latest energy fund, which is seeking $1.6 billion for investments in small and mid-cap businesses operating in the oil and gas industry. The endowment finalized its allocation to Kayne Anderson Energy Fund VII in October, according to the investment memo.

On the venture-capital front, the University of Michigan committed a total of $37 million across three Sequoia Capital funds. The endowment did not disclose the size of its individual commitments to Sequoia Capital U.S. Growth Fund VII, Sequoia Capital Global Growth Fund II and Sequoia Capital India V.

The school is a longtime backer of Sequoia Capital and is a limited partner in more than a dozen of its funds, according to the endowment’s 2015 annual report.

The university also disclosed a $25 million commitment to Pharmakon Advisors’ BioPharma Credit Investments IV, a life-sciences royalty fund expected to generate credit-like returns, and a 10 million pound ($14.46 million) allocation to Moorfield Real Estate Fund II.

The University of Michigan valued its alternative-assets portfolio at $4.1 billion as of January 31, according to an investment report. The alternatives portfolio includes $1.3 billion of private-equity holdings and $1.4 billion of venture-capital investments.

Action Item: To read more about University of Michigan’s most recent commitments, visit http://bit.ly/1Mb0mz2