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UA System investment committee approves private-manager commitments totaling up to $70 million with co-invest authorities
Summary
The University of Alabama System investment committee approved resolutions to commit to four private investment managers—KKR, Menllo Ventures, Align Capital and Scout Energy—totaling up to $70 million in new commitments plus co-investment authorities, the committee heard during a presentation by consultant Nolan Bean.
The University of Alabama System investment committee voted to approve commitments to four private managers on a collective motion after hearing recommendations from consultant Nolan Bean.
Nolan Bean of Fund Evaluation Group told trustees the pools stood at $7.6 billion at the end of April, with about $4.5 billion in the liquidity and capital reserve pool and roughly $3.0 billion in the pooled endowment. "We see a lot of smaller commitments," Bean said, explaining the committee's private-investment pacing and co-invest program designed to improve economics.
The resolutions authorized (1) up to $20 million to KKR Next Generation Technology Fund IV with up to $7.5 million of co-invest capacity, (2) up to $10 million to Menllo Ventures Select One, (3) up to $20 million to Align Capital Partners Fund Four (and $5 million to Align Collaborate Fund Two), and (4) up to $20 million to Scout Energy Partners Fund 7 with up to $7.5 million in co-investments. Justin Fanning, assistant vice chancellor for investments and treasury, presented the resolutions to the committee for consideration.
Bean described KKR's fund as focused on technology-enabled businesses such as cybersecurity and fintech and noted the fund's prior vintages had performed in the first or second quartile of peers. He said the pooled endowment remains underweight private equity relative to a 28% long-term target and that the committee's pace of commitments (roughly $130 million annually forecast to reach target) is intended to be disciplined over time.
Committee members moved and seconded a motion to consider the items collectively. After brief procedural remarks there was a vote; the chair announced the resolutions were approved (the transcript records the outcome but not a roll-call tally).
The approvals allow staff to proceed with commitments and execute documents consistent with the authorized amounts and co-invest limits. No amendments or individual vote tallies were recorded in the meeting transcript. The investment committee then adjourned.
What happens next: Staff will execute subscription documents and monitor pacing toward the private equity allocation target, and will return to the board with follow-up reporting as commitments are called and co-invest opportunities arise.
