Michigan Department of Treasury, Bureau of Investments, committed a total of $1.74 billion to 19 private investment strategies in the quarter ended June 30 on behalf of the $60.3 billion Michigan Retirement Systems, East Lansing.
The bureau's June 30 investment review showed the pension fund committed to four buyout funds: $200 million to KKR Americas Fund XII, managed by KKR & Co.; $150 million each to Apax IX, managed by Apax Partners, and Thoma Bravo Fund XII; and $19 million to Vista Foundation Fund III, managed by Vista Equity Partners.
Mezzanine debt funds Crescent Mezzanine Partners VII, managed by Crescent Capital Group, and GSO Capital Opportunities Fund III, managed by GSO Capital Partners, each received $150 million commitments.
Venture capital fund commitments were $50 million to Flagship Ventures Opportunities Fund I; $35 million each to FirstMark Capital IV and FirstMark Capital OF II; and $13 million to Accel London V, managed by Accel Partners.
Other private equity commitments were $100 million to HarbourVest Partners Co-Investment Fund IV and $35 million to HVST-TOPE, a separate account managed for the Michigan Retirement Systems by HarbourVest Partners. Warburg Pincus Private Equity XII Secondary received a $25 million commitment.
The retirement system's private equity portfolio has $9.5 billion in assets.
From the $5.2 billion real return and opportunistic portfolio, the investment bureau committed $300 million to New Fortress Energy HLDGS and $50 million to Orion Mine Finance II, managed by Orion Resource Partners. Kayne Anderson Capital Advisors received a $150 million commitment to Kayne Private Energy Income Fund and $40 million to Terra Co-Investment. Both strategies are managed by Kayne Anderson's private energy group.
From the pension fund's $6.4 billion real estate and infrastructure portfolio, $67 million was committed to KBS/SM Fund III, a separate account managed by KBS Realty Advisors, and $20.5 million for Penmain Office, another separate account managed by Domain Capital Advisors.
Separately, the Bureau of Investments reported the June 30 returns of the $42.4 billion Michigan Public School Employees Retirement System as proxy for all four state retirement systems it manages: one year, 1.5% (benchmark, 3.1%); three years, 8.7% (8.6%); five years, 8.1% (8.4%); and 10 years, 6.3% (6.5%).