University of Michigan to add more money to six PE funds investing outside US

8/23/11 Aerials view of Michigan Stadium as the sun rises during a Day in the Life of the University of Michigan on August 23, 2011.

University of Michigan’s endowment plans to add money to six private funds that invest outside of the U.S. after committing up to $340 million to them since November.

Michigan along with other endowments and pensions have continued to pile into private markets. Almost half of Michigan’s fund is invested in illiquid alternatives such as venture capital and private equity, according to the agenda for the May 16 Michigan Board of Regents posted Monday on the school’s website.

The school fund, valued at $12.2 billion as of March 31, has its largest allocation in equities at 21%, followed by venture capital at 16%.

The school didn’t disclose the amounts it’s adding to these overseas funds, which received the following commitments in the last six months.

– $50 million for Hong Kong-based Abax Asian Structured Private Credit Fund III, which makes loans to small- and medium-sized enterprises in China or that have a significant Chinese connection.

– A total of $150 million to Napier Park ELM Series III and Napier Park Henley Series I.  The private credit funds based in London provide risk retention capital to European collateralized-loan obligation managers.

– A total of about $90 million to two European funds that invest in lower-middle-market companies. London-based Primary V invests in companies in the U.K. and Summa Equity II in Oslo and Stockholm invest in the Nordic region.
– Up to $50 million to Bain Capital Asia IV for buyouts in Asia and Australia.