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Michigan Retirement Systems allocates $509 million

Michigan Department of Treasury, Bureau of Investments, committed a total of $509 million to 11 alternative investment vehicles on behalf of the $57.6 billion Michigan Retirement Systems, East Lansing.

The BOI, which oversees investment of the plans, committed a total of $285 million to three new alternative credit funds run by existing managers, according to the system’s March 31 investment report.

Kayne Solutions Fund, a debt fund focused on opportunistic and special situations, managed by Kayne Anderson Capital Advisors, was allocated $250 million. Renaissance Venture Capital Fund III, a Michigan-focused venture capital fund-of-funds managed by Renaissance Venture Partners, was awarded a $25 million commitment.

The BOI also committed $10 million to SJC Direct Lending Fund IA through a purchase on the secondary market. The Treasury unit has invested or committed to all three SJC middle-market direct lending funds managed by Czech Asset Management.

A total of $135 million was earmarked for two private equity funds: $100 million to Genstar Capital Partners VIII, a middle-market buyout fund, and $35 million to The Huron Fund V, a lower-middle-market strategy managed by Huron Capital Partners. The bureau invested in Huron’s two previous funds, the investment report showed. Genstar is a new manager.

Also, interests in various TCW/Crescent Mezzanine Partners’ funds totaling $6 million were purchased on the private equity secondary market.

Commitments totaling $83 million went to five real estate or infrastructure funds:

  • an additional $40 million was committed to existing separate account MWT Holdings LLC, which is administered by Domain Capital Advisors and managed by Simpson Housing for investment in and development of high-quality apartment properties;
  • Principal Separate Account, managed by Principal Real Estate Investors, received an additional $15 million;
  • Ridgewood Private Equity Partners’ RPEP SMRS received $13 million for co-investment in a water-line development project in Texas;
  • existing manager Paladin Realty Partners received $10 million for co-investment in shares of a Brazilian office real estate investment trust through Paladin Realty Latin America Investors V; and
  • AEW Capital Management’s AEW Senior Housing Investors III, focused on senior living and memory care properties, received an $5 million commitment.

The existing size of the Principal and MWT portfolios was not available.