Michigan Department of Treasury, Bureau of Investments, committed a total of $1.15 billion to 10 new and three existing private investment strategies in the quarter ended Sept. 30 on behalf of the $55.7 billion Michigan Retirement Systems, East Lansing.
The bureau’s Sept. 30 investment review showed the pension fund committed a total of $665 million to seven new real-return and opportunistic funds from the pension fund’s $5.3 billion portfolio.
Apollo Financial Credit Investments III, managed by Apollo Global Management, received a $300 million commitment; $100 million was committed to Redding Ridge Holdings, also managed by Apollo Global Management; $100 million was awarded to Sprott Resource Lending Fund (U.S.) and $25 million to Sprott PRL (M), a separate account using the same strategy; Kayne Anderson Energy Fund VII, managed by Kayne Anderson Capital Advisors, received a $75 million commitment; $35 million was earmarked for RPEP Energy Opportunities Institutional Partners, managed by Ridgewood Energy; and $30 million was allotted to Centerbridge Special Credit Partners II, managed by Centerbridge Partners.
From the pension fund’s $9.5 billion private equity portfolio, $100 million was committed to a new fund, GCM Grosvenor Fund Investment Program VII, managed by Grosvenor Capital Management. Another new manager, HPS Investment Partners, was awarded a $50 million commitment for HPS Mezzanine Partners Fund III. The bureau added an additional $100 million to the $101 million it has already invested or committed to Michigan Growth Capital Partners III, co-managed by Beringea and Grosvenor.
In real estate, MRS committed $200 million to real estate specialist Lone Star Funds for Lone Star Fund X. Commitments to existing funds totaled $17 million, added to the $17 million already committed and invested to M301W CoInvest, managed by CIM Investment Advisors. The bureau also added a $15 million commitment to its existing $35 million investment in Penmain Office, a real estate separate account managed by Domain Capital Advisors. The pension fund’s real estate portfolio totals $5.9 billion.
Separately, the Bureau of Investments reported the Sept. 30 returns of the $43.2 billion Michigan Public School Employees Retirement System as proxy for all four state retirement systems it manages: one year, 7.6% (benchmark, 9.8%); three years, 8.5% (8.2%); five years, 10.2% (10.8%); and 10 years, 6.2% (6.4%). Multiyear returns are annualized.