University of Michigan commits $116 mln across four funds

  • $11.2 bln endowment also re-ups stake in Ardent Health Services
  • New commitments include international venture, growth, natural resources funds
  • PE program valued at $1.4 bln

University of Michigan disclosed four new fund commitments totaling more than $116 million in the materials for its latest board of regents meeting.

The largest commitment went to a new fund at O’Brien-Staley Partners, which closed earlier this year on $600 million, according to University of Michigan investment documents. The firm’s newest credit fund will acquire “garage sale opportunities which other funds have to divest,” Chief Executive Gerald O’Brien told Dow Jones earlier this year.

University of Michigan secured its $50 million allocation to the firm’s fund, OSP Value Fund II, in April.

The $11.2 billion endowment also allocated $30 million to Carnelian Energy Capital Management’s second fund in June. Carnelian Energy Capital II closed on its $600 million hard cap in June for investments in upstream, midstream and oilfield services businesses.

University of Michigan secured a pair of allocations to international funds as well, committing 15 million euros ($16.8 million) to Vitruvian Partners’ third flagship fund and $20 million to IDG China Venture Capital Fund V.

Vitruvian closed Fund III on its 2.4 billion euro hard cap in late June, ranking it among the largest growth capital funds in Europe. IDG Capital set a $589 million target for its latest venture capital fund, according to an SEC filing.

In addition to its new fund commitments, the endowment also increased the size of its investment in Ardent Health Services, which operates several hospitals in Florida, New Jersey, Idaho and Texas, by $45.6 million.

University of Michigan previously made a $74.2 million investment in Ardent in 2015, participating in a deal led by Ventas Inc. Ventas acquired the hospital operator for $1.75 billion cash. At the time, the Ardent deal appeared to be University of Michigan Board of Regents’ first ever direct investment in private equity.

University of Michigan held $1.4 billion of its portfolio in PE as of Aug. 31. Its VC program, which is separate from PE, was also valued at roughly $1.4 billion. The natural resources platform is valued at $934 million.

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

Michigan fans cheer before the start of the NCAA football game between the University of Alabama and the University of Michigan at the Cowboys Stadium in Arlington, Texas, on Sept. 1, 2012.  Photo courtesy of REUTERS/Mike Stone