University of Michigan invests $100m in follow-on commitments

The Regents of the University of Michigan has made two follow-on commitments to real estate and retail funds.

The endowment fund committed $50 million to the Texas-based Virtus Real Estate Capital III fund, managed by Virtus Real Estate Capital, and $50 million to California-based Balboa Retail Fund II, managed by Balboa Retail Partners.

The value-add Virtus fund invests in niche real estate assets that have proven to be more resilient to market influences, such as senior housing, workforce housing and medical office, and to a lesser extent charter schools and self-storage.

The endowment fund committed $50 million to the Virtus Real Estate Capital III fund in January and $30 million to the previous fund in the series, Virtus Real Estate Capital II, which held a final close at $308 million in 2017.

Launched in January, Balboa Retail Fund II invests in undervalued retail assets controlled by stressed or distressed retailers across the United States. The end