Morgan Creek closes FoF on $260m

The University of North Carolina spin-out has already committed nearly 80 percent of its second, annual vintage fund of funds.

Morgan Creek Capital Management recently closed Morgan Creek Partners II on $260 million (€177 million). 

Its limited partners include high net worth individuals, foundations and endowments.

The fund, which is the firm’s second such vehicle it plans to raise annually, is roughly 80 percent invested, said Nirav Kachalia, a principal on the firm’s private investment team. He declined to give details as to whom Morgan Creek has made commitments.

Approximately 20 percent of MCPII’s capital will be earmarked for co-investments, with the balance heading to various alternative asset classes. Kachalia estimates that of the capital allocated for alternatives, approximately 40 percent will go to buyout funds, 20 percent to real estate funds, 20 percent to energy funds and 20 percent to venture funds.

In terms of geographic exposure, he predicted roughly 50 percent of the fund would be committed to US funds, with the balance headed to those targeting Japan (10 percent), Europe (20 percent) and emerging markets.

Morgan Creek was founded in 2004 by Mark Yusko, who from 1998 to 2004 was president and chief investment officer for the endowment of the University of North Carolina at Chapel Hill.

“The philosophy of investing is exactly the same as a progressive endowment, we’re just serving different clients,” Kachalia said.

The firm’s previous fund of funds closed in mid-2005 on $145 million.