University of Michigan re-ups $125 mln to PE, VC funds

  • UMich backs Kayne Anderson, Berkshire funds
  • Commits to co-investment fund managed by new Nordic-focused team
  • Endowment has 14.7 pct allocation to PE

University of Michigan committed more than $125 million to private equity and venture funds in December, an investment disclosure from the endowment’s Board of Regents shows.

The commitments were re-ups or follow-on investments for the endowment.

The largest commitment, $50 million, went to Kayne Anderson Energy Fund VIII, a $2 billion fund for growth-equity investments in middle-market North American oil and gas companies. Kayne Anderson Capital Advisors’ previous energy fund closed on a little more than $2 billion in 2016.

UMich also committed to a pair of co-investment funds, one of which, Summa Co-investment (No. 1) AB, focuses on lower-mid-market companies in the Nordic region of Europe. Summa Equity closed its first fund on SEK 4.5 billion ($510 million) last year.

The $11.8 billion endowment committed SEK $350 million to the co-investment fund, the investment disclosure says.

University of Michigan committed $25 million to a co-investment fund that will invest alongside Berkshire Fund IX, a $5.5 billion vehicle managed by Berkshire Partners.

Berkshire IX Coinvestment Fund will invest across a wide range of U.S. middle-market companies, according to the investment memo.

The university inked a pair of VC commitments as well, allocating $2.49 million to a U.S. seed-stage fund managed by Sequoia Capital and $15 million to AH Bio Fund II, a healthcare-focused fund sponsored by Andreessen Horowitz.

All the commitments UMich announced at its May 17 Board of Regents meeting closed in December.

University of Michigan held 14.7 percent of its assets in PE as of March 31. The endowment had another 13.9 percent of its assets in venture capital.