UAS investment committee approves $15M Tembo commitment, swaps public RE manager for LCRP
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Summary
The University of Alabama System Investment Committee voted to commit up to $15 million to Tembo Capital Mining Fund IV and to replace the Seaport public real‑estate mandate in the Liquidity and Capital Reserve Pool with a Duff & Phelps managed strategy.
The University of Alabama System Investment Committee on voice vote approved two portfolio moves: committing up to $15,000,000 to Tembo Capital Mining Fund IV LP with authority to make an additional co‑investment of up to $5,000,000, and terminating the Seaport Global Property Securities Fund in the Liquidity and Capital Reserve Pool (LCRP) and moving those public real‑estate allocations into the Duff & Phelps Global Real Estate Securities Fund.
The committee heard a market overview from Nolan Bean of the Fund Evaluation Group, who framed the recommendations in the context of recent market drivers including AI‑related equity returns, pervasive capital expenditures by large technology companies and a lower Federal Reserve funds rate that supports risk assets. Bean noted the pooled endowment and LCRP combined had crossed a preliminary $7 billion in total value as of Sept. 30.
The Tembo recommendation targets private real assets within the pooled endowment to maintain an allocation to real estate, natural resources and infrastructure that can diversify equity and fixed‑income exposure. Bean said the Fund Evaluation Group recommended a $15 million commitment to Fund IV and approval to pursue co‑investments on select assets. For the LCRP — which holds only publicly listed securities — staff recommended ending the contract with Seaport Global Property Securities Fund and placing the proceeds with Duff & Phelps (recommended as a more stable, long‑running public‑REIT manager).
Justin Fanning, assistant vice chancellor for investments and treasury, presented the resolutions to the committee and said, “Chairman Morrissette, I recommend approval.” The committee moved to consider the items collectively; a subsequent voice vote passed the resolutions. The meeting record does not include a roll‑call tally for the vote.
Discussion and documents provided to the committee show the recommendations are intended to preserve the board’s target allocations and to be selective in private real‑asset commitments, while seeking a steadier public‑REIT manager for the LCRP. No amendments or conditions were recorded in the minutes beyond the co‑investment authorization and manager replacement. Implementation details — such as precise execution timelines, expected pro forma allocations after the transactions, or any side‑letter terms — were not specified in the public record provided to the committee.
Actions recorded in the committee materials will proceed under staff authority to implement the manager changes and the Tembo commitment subject to standard closing conditions.
