University of Michigan announces $340 million in alternative commitments

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University of Michigan, Ann Arbor, disclosed up to $340 million in alternative commitments from its $16.5 billion long-term endowment pool ahead of its board of regents meeting scheduled for Thursday.

The commitments were made from June through August to four existing fund managers. UM’s investment office has authority to invest in new funds and strategies offered by existing managers without approval by the board.

The university committed $190 million to a fund managed by Cresta Fund Management, which is focused on reducing carbon emissions, sequestering carbon dioxide and developing and supporting lower carbon fuel sources such as sustainable aviation fuel, renewable diesel and renewable biogas, according to board documents.

A UM spokesman declined to provide further details about the Cresta commitment, nor any of the other disclosed commitments.

A total of up to $75 million was committed to two funds managed by 8VC, a venture capital firm that invests in early stage U.S.-based technology startups.

Also, up to $50 million was committed to three funds managed by Accel, a venture capital firm that invests across stages of company development, including growth equity investments in late-stage U.S. based technology startups. And $25 million was committed to a fund managed by Y Combinator, a venture capital firm that invests in startups, according to board documents.