State of Michigan Retirement System has approved $200m worth of commitments to two Blackstone-managed infrastructure funds, the pension fund disclosed in a board meeting document.

The Blackstone Energy Transition Partners IV fund, managed by Blackstone Management Partners, expects to raise $6bn, according to an SEC filing. The global fund will be investing in a diversified portfolio of infrastructure assets.

State of Michigan said it made a $100m commitment each to the Blackstone Green Private Credit Fund III and the Blackstone Energy Transition Partners IV funds.

The Green Private Credit Fund III fund is reported to be seeking to raise between $6bn to $7bn. The fund targets renewable energy, infrastructure, energy transition, sustainability and related sectors.

The fund is expected to provide senior secured loans, mezzanine financing, preferred equity and other structured debt to companies in North America.

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According to industry sources, the Green Private Credit Fund III fund targets a net return of at least 13%.

The debt fund is managed by Blackstone Alternative Credit Advisors, State of Michigan said

Blackstone did not respond to a request for comment.

Source: IPE Real Estate

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