LP profile

University of Michigan Endowment

Endowment · Founded 1837 · Ann Arbor, United States

#3 LP Ranking #1 of 108 endowments

Supports university operations by balancing current needs with long-term asset preservation through managed funds

98 VC firms backed

$18B AUM

~$2.7B Allocated to VC (est. 15%)

01 · Background

Who University of Michigan Endowment is.

Historical Background: The University of Michigan's Investment Office was established in 1999 to oversee the university's Long Term Portfolio. In 2000, the university launched "The Michigan Difference," a major fundraising campaign that aimed to raise $2.5 billion, with a significant portion designated for the permanent endowment.
Source of Capital: The endowment is a collection of more than 12,700 separate funds, with the majority of these being restricted for specific purposes as specified by individual donors. Other sources of capital include bequests, trust distributions, and outright gifts to the university.
Major Events: The endowment experienced a significant 40.6% growth for the 2021 fiscal year, reaching a total of $17 billion. As of June 2023, the endowment was valued at $17.9 billion, making it one of the ten largest in the United States.
Allocation Strategy: The endowment's investment strategy emphasizes diversification across a wide spectrum of asset classes, including private equity, venture capital, real assets, public equities, and hedge funds. The university's investment approach includes a focus on early-stage venture capital, demonstrating an interest in diversifying its portfolio and exploring opportunities in the alternative investment space. The endowment's distribution policy is designed to insulate the university's budget from market volatility by basing the distribution rate on a trailing average of the market.

Sources

02 · Fund commitments

The funds University of Michigan Endowment backs.

University of Michigan Endowment is a limited partner in 98 funds. 34 of them place in the Power Law Investor Ranking; those lead, best-ranked first.

Lightspeed Venture Partners

Bain Capital Ventures

Matrix Partners China

Air Street Capital

United Kingdom

BlueRun Ventures

China

Ceyuan Ventures

China

Chengwei Capital

China

Doughty Hanson Technology Ventures

United Kingdom

EQT Group

Sweden

Everstone

Singapore

Global Catalyst Partners Japan

Japan

HealthCap

Sweden

HSG

China

IndoSpace Logistics Parks

India

Kreos Capital

United Kingdom

Mosaic Ventures

United Kingdom

Plural

United Kingdom

Robeco

Netherlands

SCALE Aviation

Ireland

Schroders Capital

United Kingdom

Vitruvian Partners

United Kingdom

03 · Allocation

How University of Michigan Endowment’s fund book is spread.

The 98 funds University of Michigan Endowment backs, by where the manager is headquartered and how many funds that manager has raised.

Where those managers are based

By fund headquarters.

North America 7172%
Rest of world 1616%
Europe 1111%

United States 71 · China 8 · United Kingdom 7 · India 3

How established those managers are

Managers grouped by how many funds they have raised — across the 57 of 98 with a fund history on record.

Emerging funds · 23

Established funds · 34

5 1

9 2

9 3

6 4

6 5-6

11 7-9

3 10-14

8 15+

Funds raised by the manager

04 · Direct investments

The companies University of Michigan Endowment backs directly.

University of Michigan Endowment holds 1 company directly, separate from the funds it commits to as a limited partner.

MemryX

Semiconductors · USA

$176M valuation

05 · Other LPs

Other LPs.

Other endowments in the Power Law LP ranking, closest to University of Michigan Endowment by combined power-law score — North America first, then the nearest worldwide.

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The Heinz Endowments

LP rank #130 · United States

$2.3B AUM 45 VC funds backed

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University of Washington Endowment

LP rank #140 · United States

$6.2B AUM 28 VC funds backed

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The Duke Endowment

LP rank #157 · United States

$4.5B AUM 19 VC funds backed