UMich backs Japan PE with $40 mln Longreach commitment

University of Michigan’s endowment committed more than $86 million to private equity in recent months, an investment disclosure in its April 20 meeting materials shows.

The endowment’s largest commitment, $40 million, went to Longreach Capital Partners 3, managed by Longreach Group. The firm will use Fund 3 to invest in control and structured minority investments in Japan-focused businesses.

The firm is led by Chairman and Partner Mark Chiba. Longreach, with offices in Tokyo and Hong Kong, could not reached for comment.

UMich also committed 25 million euros ($26.8 million) to TDR Capital IV, a London middle-market fund. TDR Capital is targeting 2.5 billion euros for its latest fund, which will acquire Western European companies that need operational improvements.

The endowment also increased a commitment it had approved for Kuramo Africa Opportunity Fund II and Kuramo Africa Opportunity Co-Investment Vehicle II in 2015. The university increased its total commitments to the two funds to $60 million from $50 million.

Beyond its fund commitments, the endowment also secured a $10 million co-investment in a portfolio of U.K. North Sea assets held by Siccar Point Energy, a portfolio company of Blackstone Group and Blue Water Energy. University of Michigan previously committed $20 million to Blue Water Energy Fund I in 2013, according to investment records. The fund held a final close on $861 million.

University of Michigan valued its PE portfolio at $1.27 billion through Feb. 28. The portfolio represented 11.8 percent of the university’s investment assets as of that date.

Action Item: More about University of Michigan’s endowment: www.regents.umich.edu/

Michigan fans cheer before the start of the NCAA football game between the University of Alabama and the University of Michigan at Cowboys Stadium in Arlington, Texas, on Sept. 1, 2012.  Photo courtesy of Reuters/Mike Stone