Michigan Retirement earmarks $1.7 billion to alts

Michigan Department of Treasury, Bureau of Investments, committed $1.7 billion to alternative funds on behalf of the $70.5 billion Michigan Retirement Systems, East Lansing, in the quarter ended March 31.

In private equity, the bureau committed $569.5 million to nine funds, including $100 million to Acorn Bioventures, a late stage life sciences/health-care venture fund managed by Acorn Capital Advisors, $100 million to Insight Partners XI, a growth equity software fund, and $100 million to Odyssey Investment Partners Fund VI, a diversified midmarket buyout fund. It also committed $75 million to Clearlake Capital Partners VI, a special situation industrial and software fund managed by Clearlake Capital Group, $75 million to Flagship Pioneering Origination Fund VII, a life sciences venture fund, $75 million to Vista Foundation Fund IV, a middle-market tech buyout fund managed by Vista Partners Equity Management, $25 million to Lightspeed Venture Partners Select IV, a late-stage venture fund, $10 million to Lightspeed Venture Partners XIII, an early-stage venture fund, and $9.5 million to Golden Bell Azalea, a separately managed account focused on opportunistic deal flow managed by ICG Advisors.

In real return and opportunistic, the bureau committed $250 million to SJC Onshore Direct Lending Fund IV, a separately managed account that will provide senior secured loans to U.S. middle-market companies managed by Czech Asset Management; $210 million to Axton Holdings, a separately managed account that will acquire publishing and copyrights, managed by Barings; and $100 million to HarbourVest Direct Lending Fund (L), a commingled fund that provides senior secured loans to lower-middle and middle market companies primarily in the U.S., managed by HarbourVest Partners.

In real estate, GreenOak Europe III, a closed-end commingled fund that will target opportunities in Western Europe of quality institutional real estate focusing on logistics assets managed by Bentall Green Oak, received a €75 million ($82.7 million) commitment, and ArcLight Energy Partners VII, a closed-end commingled fund specializing in investments in North American energy/power infrastructure managed by ArcLight Capital Partners received a $50 million commitment.

Lastly, in absolute return, the bureau committed $200 million to Cerberus Manitou Residential Loan Fund, managed by Cerberus Capital Management, a large private equity/private credit firm, and $200 million to Monument Park, a credit and rescue financing investment vehicle managed by Domain Capital Advisors.

As of March 31, the Michigan Retirement Systems’ actual allocation was 21.2% private equity, 18.4% domestic equities, 13.9% international equities, 13.7% fixed income, 13.2% real return and opportunistic strategies, 9.6% real estate and infrastructure, 6.1% absolute return and 3.9% short-term investments.

Source: pionline

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