Searches and Hires

Michigan Retirement Systems earmarks $1.34 billion for 18 alternatives funds

Michigan Department of Treasury, Bureau of Investments, committed $1.34 billion to 18 alternative funds on behalf of the $71.2 billion Michigan Retirement Systems, East Lansing, in the quarter ended June 30.

For private equity commitments, the bureau revealed in its recently released second-quarter 2018 investment report a commitment of $155 million to Carlyle Europe Partners V, a European buyout fund managed by Carlyle Group.

It also committed $125 million each to Thoma Bravo Fund XIII, a buyout fund; and TPG Partners VIII, an upper-middle-market buyout fund.

In addition, it agreed to commit $100 million apiece to New Leaf Biopharma Opportunities II, a venture capital fund managed by New Leaf Venture Partners; Riverside Capital Appreciation Fund VII, a middle-market buyout fund managed by Riverside Co.; and Kelso Investment Associates X, a middle-market buyout fund managed by Kelso & Co.

Meanwhile, PPC Partners received a $75 million commitment from the bureau for its North American middle-market buyout fund PPC Fund II, while New Leaf and SK Capital Partners each received $50 million for their respective venture capital and buyout funds, New Leaf Ventures IV and SK Capital Partners V.

Rounding out the private equity commitments are $40 million to Meritech Capital Partners VI, a venture capital fund; $25 million each to TPG Healthcare Partners, private equity health-care fund; and Lead Edge Capital IV, a growth fund; and $15 million apiece to TI Platform Fund II and TI Platform BOV, funds of funds managed by Trusted Insight that invest in emerging venture capital funds.

For the retirement systems' real estate and infrastructure division, the bureau committed $35 million to Bentall Kennedy's Strategic II Fund; and $7.2 million to Northpark Land Associates, a real estate fund managed by Domain Capital Advisors.

Finally, for its real-return, opportunistic and absolute-return division, the bureau committed $150 million each to NGP Natural Resources XII, managed by NGP Energy Capital Management; and Kayne Private Energy Income Fund II, run by Kayne Anderson Capital Advisors.

The retirement systems' asset allocation as of June 30 was 25% domestic equities, 17.5% international equities, 15.6% private equity, 12.3% fixed income, 11.3% real estate and infrastructure, 8.9% real return and opportunistic, 5.7% absolute return and 3.7% short term.