LPs

UMich commits millions to energy, oil & gas

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private equity, pension fund, University of Michigan
Michigan Wolverines Head Coach Jim Harbaugh prior to the game against the Oregon State Beavers at Michigan Stadium on Sept. 12, 2015. Photo courtesy Rick Osentoski-USA Today Sports/ Reuters
  • Terra Energy Partners supported by a Kayne Anderson fund
  • $9.9 bln endowment commits to new Andreessen Horowitz fund
  • UMich holds $30 mln stake in new Advent flagship

The University of Michigan disclosed almost $100 million of new commitments to private equity and venture capital in its July 21 meeting materials.

Almost half the $9.9 billion endowment’s new commitments went to energy- or oil- and-gas-related assets, including a new natural-gas-exploration partnership called Terra Energy Partners.

University of Michigan committed $20 million to Terra Energy, which is backed by a PE fund managed by Kayne Anderson Capital Advisors.

The endowment also re-upped $25 million to Yorktown Energy Partners XI. Yorktown Partners set a $1.7 billion target for its new fund, which will invest in exploration, production, transportation, marketing and other midstream energy sectors, SEC filings and university documents show.

University of Michigan’s largest commitment, for $30 million, went to Advent International’s $13 billion flagship fund. Advent closed Advent International GPE VIII on $13 billion in March.

The endowment also made a pair of commitments to venture capital funds. AH Bio Fund I, an Andreessen Horowitz fund led by Vijay Pande, received $7 million from UMich. Andreessen Horowitz set out to raise $200 million for the fund, TechCrunch reported.

The endowment also committed $15 million to Accel London V, a VC fund for early- and growth-stage investments in European companies. The fund held a final close on $500 million in April.

University of Michigan held around 12.5 percent of its assets ($1.25 billion) in PE as of May 31, an investment report said. The endowment had a 13.8 percent allocation to VC as of that date. Its venture capital portfolio is valued at $1.37 billion.

Action Item: UMich’s new commitments: http://bit.ly/2amAjrP

Michigan Wolverines head coach Jim Harbaugh prior to the game against the Oregon State Beavers at Michigan Stadium on Sept. 12, 2015. Photo courtesy Rick Osentoski-USA Today/Reuters