The $29 billion State of Michigan Retirement Systems, Lansing, reached an agreement in principle to invest between $200 million and $400 million in a leveraged buy-out fund sponsored Kohlberg Kravis Roberts, said Barry L. Stevens, director-bureau of investments. The Michigan investment staff has not yet received the offering memorandum, so Mr. Stevens declined to discuss the fee.
Michigan was an investor in five previous KKR leveraged buy-out funds, said Mr. Stevens. The system earned an average annualized rate of return of a little more than 20% on those investments, he said.
