University of Michigan commits $15m to Huron

The Detroit mid-market specialist will target investments in US and Canadian businesses, improving portfolio companies through add-ons and operational strategies.

Huron Capital Partners has received a $15 million commitment from the University of Michigan’s Board of Regents, according to documents released prior to the board’s Wednesday meeting. 

The Detroit-headquartered firm is reportedly seeking $350 million for its fourth vehicle, according to a Bloomberg report. US Security and Exchange filings for the fund could not be found at press time. 

Huron did not respond to a request for comment. 

Fund IV will make control investments in lower and mid-market companies in the US and Canada, employing a buy and build strategy and acquiring add-ons to grow existing platform business, according to Board documents. 

The firm will target “fundamentally sound companies which are operating below their potential”, according to the documents. In addition to add-ons, the firm’s strategy also includes an operational approach to improving portfolio companies 

Target sectors include consumer products, business services and industrial manufacturing, according to documents.

Earlier this year, Huron exited its stake in products testing company Labstat, generating a 6x return multiple on the deal. The firm had acquired Labstat in 2006 through its $185 million 2005 vintage. 

Huron was founded in 1999 by Brian Demkowicz and has raised more than $600 million across its three previous private equity funds. In addition to Detroit, Huron also has an office in Toronto.