Michigan Toasts Its Target
The University of Michigan is the latest institutional investor to bust through their target allocation to private equity, according to new information released as part of today's monthly Regents meeting. The system's November investment report shows 14.2% exposure to private equity, compared to a 12.5% target allocation. Venture capital is also past plan, at 6.9% compared to 6 percent. Part of this is the so-called denominator effect, whereby falling public equity prices have artificially boosted the portfolio weighting of illiquid assets like private equity. But part of it also seems to be that the Michigan Regents keep committing to new funds, whereas certain other institutional investors have gone cold turkey. For example, the system today disclosed $69 million in new commitments to funds managed by
