Michigan Retirement Systems, Lansing, made commitments totaling $580 million to eight alternative investment managers in the quarter ended June 30.
A total of $415 million was committed to three private equity managers and two venture capital managers, materials for a Sept. 4 meeting of the investment advisory committee of the Michigan Treasurer’s Bureau of Investments showed. The bureau managed a total of $60.2 billion as of June 30, $56.6 billion of which was managed for the five state retirement systems.
Turnbridge Capital Partners received a $150 million commitment and Warburg Pincus, $125 million, for energy-related private equity funds. Veritas Capital Fund Management was given a commitment of $100 million for investment in a middle-market buyout fund.
Late-stage venture capital managers Meritech Capital Partners and FirstMark Capital each received $20 million commitments.
The names of the specific private equity and venture capital funds weren’t provided by Peter A. Woodford, administrator of the bureau’s alternative investments division, in his report to the investment advisory committee.
In infrastructure, $75 million was committed to First Reserve Energy, for investment in North American energy-related companies, meeting documents showed.
In real estate, $25 million was committed to global fund of funds Crown Small Cap Real Estate Fund II, managed by LGT Clerestory.
Another energy-related commitment made from the fund’s real assets portfolio was $65 million to KKR Energy Income and Growth Fund.
Jon M. Braeutigam, Bureau of Investments chief investment officer, provided returns of the $43.9 billion Michigan Public School Employees’ Retirement System — the largest of the five funds the bureau manages using very similar asset allocations — for periods ended June 30: one year, 19.1% (benchmark, 17.1%); three years, 11.1%% (benchmark, 11.1%); five years, 13.1% (benchmark, 13.7%); and 10 years, 7.5% (benchmark, 7.5%). Multiyear returns are annualized.
