University of Michigan allocates $30 million to private equity

The board of regents announced several commitments at its last meeting

The University of Michigan Board of Regents is allocating $30 million to private equity as part of a broader $125 million allocation to alternatives according to meeting documents from the board’s September 18, 2014 meeting.

The $30 million investment will go to the Old Ironsides Energy II Fund, which has a $1 billion target according to Private Equity International’s research and analytics division. The allocation came from the University’s long-term portfolio.

Old Ironsides was formed from a full team spinout of Liberty Energy in 2013, the oil and gas investment arm of Liberty Mutual. Liberty Mutual is an anchor investor in the fund, which acquires and develops assets in the upstream and midstream sectors of the oil and gas industry in North America.

The team intends to invest with proven management teams, many of which they have previously funded, and will target investments between $25 million and $150 million. The commitment will allow the University to invest alongside the Old Ironsides team.

In addition to the private equity commitment, the University made a $14.5 million commitment to MAP 2003, a U.S. focused energy royalty fund based in Palo Alto, CA; $30 million to Shorenstein Realty Investors Eleven, a California real estate fund; $30 million to the Apollo Structured Credit Recovery Fund Ill, and $20 million to the Orion Mine Finance Fund I-A.