LP profile · Endowment
University of Michigan Endowment
University of Michigan Endowment is a endowment headquartered in United States (North America). Ranked #6 in the 2026 Dealroom Power Law LP Ranking by realised power-law score across its venture commitments.
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
- https://publicaffairs.vpcomm.umich.edu/key-issues/university-of-michigan-endowment/
- https://record.umich.edu/articles/endowment-101-facts-about-u-ms-17-9b-endowment/
- https://www.bf.umich.edu/investment-office/
- https://theuniversityofmichigan.weebly.com/endowment.html
- https://www.michigandaily.com/news/administration/regents-discuss-umich-endowment-in-40-6-to-17-billion/
- https://spg.umich.edu/policy/501.11
- https://inforcapital.com/companies/university-of-michigan-endowment/
- https://funderlyst.com/blog/university-of-michigan-diversifies-portfolio-with-three-alternative-funds/
- https://publicaffairs.vpcomm.umich.edu/wp-content/uploads/sites/19/2023/12/2023-06-30-Endowment-Profile.pdf