Michigan Endowment to Invest $185 Million in Three Fund ManagersBy
Some 30% of new managers last year were in lending strategies
Unversity of Michigan endowment valued at $10.6 billion
The University of Michigan’s endowment plans to invest $185 million with three investment funds that use either direct lending or long-short strategies.
The school is seeking to commit $75 million to Granite State Capital Partners, a New York-based credit specialist that invests in illiquid corporate bank loans, according to the agenda of the school’s March 16 board of regents meeting. Michigan also plans to give $60 million to Brevet Direct Lending, a private debt hedge fund sponsored by Brevet Capital Management of New York.
Michigan, which managed about $10.6 billion as of Jan. 31, added about 30 percent of its new managers in the last fiscal year that focused on private credit, distressed and other forms of debt, according to annual reports and other public documents.
The two new lending strategies are consistent with the school’s approach to “invest with experienced managers who have a niche strategy and the ability to add value,” Kevin Hegarty, Michigan’s chief financial officer, wrote in the request for approval.
The school also wants to commit $50 million to Matrix Capital Management of Waltham, Massachusetts, a long-short hedge fund that focuses on publicly traded U.S. technology companies.
Michigan is adding money to five managers who were previously approved by the regents. They include HealthCap VII, a Stockholm-based venture fund, and LBA Realty Fund VI, a real-estate fund based in Newport Beach, California.