Michigan Department of Treasury, Bureau of Investments, committed a total of $1.087 billion to 11 private investment strategies in the quarter ended Sept. 30 on behalf of the $60.2 billion Michigan Retirement Systems, East Lansing.
A total of $697 million was committed to five alternative investment strategies from the pension fund's $4 billion absolute-return/real-return/opportunistic portfolio.
The largest commitment was $300 million to Barings Asset-based Income Fund I, a commingled fund that will focus investment in infrastructure, intangible assets, natural resources and capital assets.
The investment division also committed $120 million to BSCH Parallel (MLG) I, a commingled fund managed by Blackstone Group that will invest in equity minority stakes.
Two credit funds were awarded $100 million each: Vida Insurance Credit Opportunities Fund II, managed by Vida Capital Management for investment in longevity-based, insurance-linked securities; and SJC Direct Lending Revolver Fund III, an asset-based direct lending fund managed by Czech Asset Management.
The final commitment from the portfolio in the period was $77 million to Napier Park Global Capital's Napier Park Aircraft Leasing Rollover Fund.
Bureau investment staff earmarked a total of $245 million to four private equity and venture capital funds during the three-month period from the retirement system's $10.6 billion private equity portfolio:
- $100 million to Insight Venture Partners X, a private equity fund that will focus on investment in U.S. software and internet companies;
- $75 million to Flagship Pioneering Fund VI, a venture capital fund that will find investment opportunities in life-sciences businesses;
- $50 million to Apax Digital Fund, managed by Apax Partners, which will concentrate on lower middle-market buyout opportunities in high-growth technology companies worldwide; and
- $20 million to Science Ventures Fund II, which will invest in U.S. technology startups in marketplace, mobile and media sectors.
Finally, three allocations totaling $145 million were made to real estate funds from the pension fund's $6.6 billion real estate and infrastructure portfolio.
The largest commitment was $75 million to Rialto Absolute Partnership I, a co-investment in a mezzanine loan on a portfolio of high-quality biomedical office and laboratory buildings, managed by Rialto Capital Management.
Two funds managed by Transwestern Strategic Partners received commitments, with $50 million to TSP Fund II, a portfolio of U.S. office, retail, industrial, multifamily and medical office buildings in the U.S., and $20 million to TSP C-II, a co-investment in an industrial portfolio that includes high-quality warehouses.