Erik Lundberg, chief investment officer of the $7.1 billion University of Michigan endowment fund, joined a roster of prominent Southeast Michigan business leaders on the board of directors of the fledgling investment fund at Detroit Renaissance.

"That is a really nice catch," said Renaissance President Doug Rothwell of Lundberg. "We're really happy to have him."

Under Lundberg's guidance, the UM endowment, the third largest among public U.S. universities, had a 25.6 percent return on investment in fiscal 2007, growing over the year from $5.6 billion. Its annualized return over the last three years was 20.3 percent, and over five years was 17.2 percent.

Sam Valenti III, who has been leading fund-raising efforts for the Renaissance fund and is executive chairman of Bloomfield Hills-based TriMas Corp. and CEO of Bloomfield Hills-based Valenti Capital L.L.C., has been named as chairman of the board.

Other members are Dick Gabrys, former vice chairman of Deloitte & Touche L.L.P. and former dean of the business school at Wayne State University; Alan Gilmour, former vice chairman and CFO at Ford Motor Co.; and Frank Hennessey, founder of Huntington Woods-based Hennessey Capital L.L.C.

The Renaissance fund, announced in Crain's last June, expects to raise $100 million. A fund of funds, it will invest in area venture-capital and private-equity firms, which in turn will invest in growing companies.

Rothwell said he will name the area corporations that have committed money to the fund when it has a first close, which will occur after it receives signed commitments of $50 million.

It is thought that at least five area companies or institutions have committed about $40 million.

Troy-based eastern region of Huntington Bank announced in July it would invest at least $5 million, contingent on the fund raising $50 million, and would invest another $2.5 million if the fund raised $75 million.

Other commitments include Detroit-based Blue Cross Blue Shield of Michigan and Detroit-based DTE Energy Co. The amounts will be disclosed after the first close.

Valenti is president of Masco Capital Corp., which manages Masco Corp.'s pension-fund investments. Masco's board is expected to vote soon on a possible investment in the fund. Valenti is not on that board.

When asked when the fund could begin investing, Rothwell said, "My guess is we're looking at summer."

Valenti said he has begun talks with potential fund managers, including one venture-capital veteran he declined to name who left Michigan for a job in another state.

"I'm counting on getting someone hired fast," said Valenti. "The name of the game is to hit the ground running and start doing deals. We'll top this fund off at $100 million and then shoot for $200 million for the next one. We'll get a lot of companies doubling down, and I'll start hitting the foundations, the nonprofits and the state of Michigan."

Valenti was chairman of Michigan's pension board from 1992 to 2000.

Tom Henderson: (313) 446-0337, thenderson@crain.com