Michigan Bureau of Investments, Lansing, committed a total of $280 million to eight alternatives funds and terminated three active domestic value equity managers with assets totaling $1.9 billion.
The bureau, which manages the $54.8 billion Michigan Retirement Systems, Lansing, made the commitments in the three months ended March 31, according to meeting materials for the June 5 meeting of the state's Investment Advisory Committee.
Ardian received a $35 million commitment to ASF VI Infrastructure, a global fund of funds that invests in secondary market opportunities at a discount. Michigan Bureau of Investments also invested $45 million in Ardian ASF Como Co-Investment, which is purchasing an existing limited partners' interest in a European infrastructure fund.
The Apollo Structured Credit Recovery Fund III, managed by Apollo Global Management received a $100 million commitment. Energy-focused funds Ridgewood Energy Oil & Gas Fund II Co-Investment and Varo Co-Investment Fund, managed by Varo Partners received commitments of $25 million and $4 million, respectively.
Commitments totaling $71 million also were made to three technology-focused private funds.
Private equity fund Vista Equity Partners Fund V received a $50 million commitment, while $14 million and $7 million, respectively, were committed to venture capital funds Accel Growth III and Accel Partners XII, according to advisory committee meeting information.
Separately, the bureau redeemed assets from the following firms in the quarter ended March 31:
- $954 million from LSV Asset Management's active U.S. large-cap value equity strategy;
- $727 million from Artisan Partners Asset Management's active U.S. midcap value equity strategy; and
- $229 million from Donald Smith & Co.'s active U.S. small-cap value equity strategy.
The terminations reduced MRS' lineup of active domestic equity managers to 11 and the aggregate portfolio to $3.6 billion from $4 billion, according to the committee's meeting presentations.
Jon M. Braeutigam, the bureau's chief investment officer, said in an e-mail that repositioning the U.S. equity manager achieved lower overall fees with a similar risk-return profile for the portfolio.
A total of $1.7 billion of the terminated assets was reallocated to four of the remaining active domestic equity managers: Fisher Investments' all-cap equity total-return strategy allotment rose to $950 million from $407 million; Seizert Capital Partners' allocation was raised to $700 million from $168 million; Los Angeles Capital Management & Equity Research's all-cap growth equity mandate increased to $515 million from $238 million; and Champlain Investment Partners' midcap core equity strategy was bumped up to $500 million from $139 million.
Assets managed by Attucks Asset Management in active domestic equity were dropped to $77 million from $177 million, while Bivium Capital Partners' allocation was reduced to $66 million from $151 million. Neither manager's specific investment style could be learned.
Portfolios managed by the other four remaining active domestic equity managers were unchanged.