Michigan Retirement Systems allocates $1 billion to 16 managers

Michigan Department of Treasury, Bureau of Investments, committed or invested a total of $1.04 billion to 16 private funds on behalf of the $54.9 billion Michigan Retirement Systems, Lansing, in the quarter ended Dec. 31.

Eight private equity funds received a total of $675 million in commitments, the largest of which was $175 million to Warburg Pincus Private Equity XII, according to the bureau’s fourth-quarter 2015 investment report.

Other commitments were $125 million to TSG7, managed by TSG Consumer Partners; $100 million to Dover Street IX, a U.S.-focused secondary fund, managed by HarbourVest Partners; and $75 million to Harvest Partners VII.

Four private equity funds received commitments of $50 million each: Axiom Asia IV, a fund of funds that can invest Asian buyout, growth, venture capital, secondaries and co-investments, managed by Axiom Asia Private Capital; FIMI Opportunity Fund VI; Riverside Partners Micro-Cap Fund IV; and Shamrock Capital Growth Fund IV, managed by Shamrock Capital Advisors.

Investment staff also committed $130 million total to four real estate funds, with $50 million each committed to Rialto Real Estate Fund III, managed by Rialto Capital Management, and TSP Value and Income Fund, managed by Transwestern Investment Group.

Co-investment commitments were made to two real estate managers for multifamily housing development deals. Avanath Capital Management received a $20 million for a separate account managed exclusively for the Michigan retirement systems. CIM Investment Advisors was awarded $10 million for the commingled M1 Westgate Coinvest fund.

Also, the retirement systems invested $100 million in Visium Balanced Master Fund, a multistrategy hedge fund, run by hedge fund manager Visium Asset Management.

In energy-related strategies, a total of $135 million was committed to three funds, led by $65 million to a separate account focused on power transmission line equity investments managed by Ridgewood Private Equity Partners. The pension funds also committed $50 million to Carlyle Energy Mezzanine Opportunities Fund II, managed by Carlyle Group, and $20 million to Orion Coinvest III, managed by Orion Capital Managers..