The University of California System announced Monday the creation of UC Ventures, a $250 million fund that will pursue investments in research developed by faculty members and students.

UC Ventures will seek to generate attractive risk0adjusted returns by investing in commercial opportunities arising from the University of California. No tuition or state funding will be used.

With its 10 campuses, five medical centers and three affiliated national laboratories, as well as more than 20 incubators and accelerators, 233,000 students, 190,000 faculty and staff, and 1.7 million living alumni, the University of California is a rich environment for innovation that is already the target of venture capitalists from around the world.

"UC Ventures is the result of careful evaluation of best practices to develop the most effective investment vehicle to capture the economic value the University of California is creating through its pioneering research," UC Chief Investment Officer Jagdeep Singh Bachher said in a statement. "Our goal is to build upon the technology commercialization efforts at UC while carefully managing potential risk exposures. We are confident an independent UC Ventures will achieve this."

The fund will be a "stand-alone division of the system's endowment operations, and has been directed to take a long-term approach," Inside Higher Ed reported. It is structured to operate with a long-term, investment horizon.

"In addition to any financial benefits, we see this fund as a potential vehicle for providing resources to support the basic research and talent -- among both faculty and students -- required to develop innovations that can benefit California and the world," said UC President Janet Napolitano.

In collaboration with its 10 campuses, the university system also intends to create an independent advisory board of leading figures in Silicon Valley and California to provide advice and industry insight to UC Ventures. These advisory board members will be announced in the coming months.