- $9.9 bln endowment re-ups $40 mln to Roark IV
- Committed $20 mln to two of Roark’s prior funds
- Another $20 mln committed to Catalyst Capital, Sequoia
University of Michigan doubled the size of its prior commitments to Roark. The endowment committed $20 million to Roark’s second flagship fund in 2007 and re-upped another $20 million with Fund III in 2011. Fund II netted a 25.6 percent internal rate of return as of March 31, according to a Hamilton Lane report included in Teachers’ Retirement System of Louisiana’s August meeting materials. Fund III netted a 6.5 percent IRR as of the same date.
Roark Capital Partners IV is targeting $2.5 billion for investments in the franchise, brand management, environmental services and marketing services companies.
The $9.9 billion endowment disclosed $60 million in new commitments to private equity and venture capital funds in its Nov. 20 meeting materials. In addition to its re-up with Roark, University of Michigan committed $15 million to a Catalyst Fund IV Parallel Limited Partnership, a distressed debt fund that will target investments in Canadian companies.
Michigan approved a $20 million commitment to Catalyst Capital Group’s Catalyst Fund IV in 2013. That vehicle closed on $812 million last year.
Michigan also committed $5 million to Sequoia Capital’s Sequoia Capital China Venture Fund V, which will make early stage investments in Chinese information technology, consumer, healthcare and clean tech companies.
Catalyst Capital, Roark and Sequoia did not respond to requests for comment at press time.
University of Michigan had a 13.4 percent allocation to private equity and an 11.9 percent allocation to venture capital as of September 30, according to meeting materials.