University of Michigan commits $50m to real estate fund
The $11.6 billion Regents of the University of Michigan has committed $50 million to LBA Realty Fund VI, a real estate fund managed by LBA Realty. LBA Realty Fund VI, which opened in June 2016, invests in office and industrial properties, primarily in western U.S. markets, with a value-added investment strategy. The fund has a $1 billion equity fundraising target and has raised $350 million so far. LBA Realty expects to hold a final close in June. University of Michigan previously committed $20 million to the fund’s predecessor, LBA Realty Fund V, in 2014. The fund held a $776 million final close in November 2016, exceeding its $750 million equity fundraising target. University of Michigan has a target allocation to real estate of 10 percent and an actual allocation of 9.1 percent.