Alyeska Hedge Fund to Manage Money for University of Michigan

  • Endowment pool pledges about $345 million to seven managers
  • Alyeska fund was started by Citadel alumnus Anand Parekh

The University of Michigan pledged about $345 million to seven investment managers from its $10 billion longterm endowment pool, following the approval of the school’s regents Thursday.

The endowment committed $235 million to three new managers and more than $100 million to existing partner funds. The university, based in Ann Arbor, Michigan, has the third-largest endowment among public colleges in the U.S.

One of the largest commitments was a new $100 million investment in Alyeska Investment Group, a Chicago-based hedge fund started by Citadel alumnus Anand Parekh. The fund has $9 billion in assets as of March, including leverage, according to a regulatory filing.

Another $100 million is designated to The WindAcre Partnership, a long-only equity manager based in Houston, which has more than $500 million in assets. The fund is managed by Snehal Amin, an alumnus of the university and a founding partner of Theleme Partners hedge fund in London.

The endowment also said it would invest $35 million with Madison Dearborn Capital Partners VII, a private equity fund in Chicago; about $40 million in Stockholm-based private equity fund EQT VII, and $30 million in Foresite Capital Fund III, a venture capital fund that invests in late stage health care companies.

The university’s endowment has been managed by Erik Lundberg since 1999. Its annual return for fiscal 2015 will be reported in October. Last year, the fund reported a 10-year return of 10.0 percent, one of the top returns for public universities with at least $1 billion under management.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE