University of Michigan commits $50 mln to PE, VC

In February, the $9.8 billion endowment committed 25 million euros ($26.6 million) to Bridgepoint Europe V, a middle market fund that will invest in European businesses, according to meeting materials. Bridgepoint Capital set a 3.5 billion euros target for the vehicle, which will take control positions in companies with enterprise values between 150 million euros and 600 million euros, according to Pennsylvania Public School Employees’ Retirement System documents.

The fund held a first close in October, according a Dow Jones report.

Bridgepoint closed its previous European fund on 4.8 billion euros in 2008. Fund IV had netted a 10.4 percent internal rate of return and 1.3x multiple as of Sept. 30, according to the California Public Employees’ Retirement System.

The meeting materials also disclosed a $25 million commitment to New Leaf Ventures III in November. New Leaf Venture Partners will use the fund to invest in venture and growth stage healthcare technology companies, according to endowment documents. The fund will target investments across a number of healthcare sectors, including biopharmaceuticals, information technology, medical devices, biological tools and diagnostics.

New Leaf set a $375 million target for the fund, according to a December SEC filing. The firm closed its previous fund on $450 million in 2007.

Roughly 40 percent of University of Michigan’s investment assets were in alternatives as of Jan. 31, according to meeting materials. The endowment valued its private equity portfolio at a little more than $1.2 billion. Its venture capital portfolio is also valued at approximately $1.2 billion.