The $54.4 billion Michigan Retirement Systems, Lansing, committed a total of $260 million to seven private investment strategies in the quarter ended Sept. 30.
In private equity, $50 million each was committed to Entertainment IP Fund and HarbourVest Partners Mezzanine Income Fund, showed a report from the Bureau of Investment, a division of Michigan Department of Treasury, which manages the state’s four public employees pensions funds. The report was part of documents presented to the bureau’s investment advisory committee during Tuesday’s meeting.
The entertainment fund is a direct lending fund focused on restructuring opportunities within the entertainment, media and communication sectors, managed by Shamrock Capital Advisors. HarbourVest Partners’ fund focuses on mezzanine debt opportunities in U.S. small- to middle-market companies.
A total of $130 million was also committed to four real estate and infrastructure strategies, according to the meeting materials. The pension fund committed $50 million to TPG Real Estate Partners II and $30 million each to KBS/SM Fund III, a separate account real estate strategy managed for the retirement system by KBS Realty Advisors, and IPF II (India Property Fund) Co-Invest, managed by J.P. Morgan Asset Management. It also committed $20 million to Eastcorp Properties, a real estate separate account managed for the Michigan public pension funds by AEW Capital Management.
In private credit, $30 million was committed to Innocor, a direct lending co-investment separate account managed by Czech Asset Management.
Separately, Michigan Public School Retirement System, the largest of the four retirement systems managed by the investment division with assets of $42.2 billion, had a return of -2.5% (benchmark, -3.1%) in the quarter ended Sept. 30.
Over longer periods ended Sept. 30, the pension fund returned 2.6% (benchmark, 2.3%) for the one-year period; three years, 10.1% (9.5%); five years, 10% (10%); seven years, 7.4% (8.1%); and 10 years, 6.7% (6.5%).
Multiyear returns are annualized.