- Backs PetroCap Partners, Stabilis
- Stabilis Fund to invest in small, complex distressed assets
- PetroCap poised to hit $350 mln target
University of Michigan committed $50 million to Stabilis Fund IV, which will invest in non-performing debt backed by hard assets. The fund will focus on “relatively small and complex transactions” in the U.S. and Northern Europe, according to Michigan documents.
Former Goldman Sachs and Silver Point Capital executive Salman Khan founded Stabilis Capital Management in 2010. The firm has raised four investment vehicles totaling $650 million, according to the firm’s website.
Fund IV’s target was not disclosed. A Stabilis spokesman did not provide details about Fund IV when contacted.
The board also approved a $30 million commitment to PetroCap Partners II, a joint venture managed by energy investment firm PetroCap and Highland Capital. The commitment puts the firms close to PetroCap Partners II’s $350 million hard cap. The firms raised at least $306 million for the fund through Nov. 12, according to an SEC filing.
PetroCap and Highland Capital also partnered on Falcon E&P Opportunities Fund, which closed on $163 million in 2011. That fund generated a 14.4 percent internal rate of return and 1.2x multiple as of June 30, according to San Diego County Employees Retirement Association documents.
In addition to its commitments to private equity, University of Michigan committed up to $69.3 million to private real estate funds managed by BLG Capital/Bilgili Group, The Related Companies, Thackery Partners and a co-investment with Phoenix Asia Real Estate Investments III.
University of Michigan’s $9.8 billion endowment held a 13.1 percent allocation to private equity as of Oct. 31, according to meeting materials. The portfolio was valued at $1.3 billion as of the same date.