Searches and Hires

Michigan moves $1.5 billion to alternatives

Updated with correction

State of Michigan Investment Board disclosed a total of $1.5 billion in fourth-quarter commitments for the $69.5 billion Michigan Retirement Systems, East Lansing, in materials for the board's March 7 meeting.

Within the pension fund's real return, opportunistic and absolute-return portfolio, the board committed $300 million to TSSP Capital Solutions Fund, a special situations fund managed by TPG, and $35 million to Flywheel Energy Co-Invest, a natural resources fund managed by Kayne Anderson Capital Advisors.

Within real estate and infrastructure, the board committed $200 million each to Blackstone Real Estate Partners IX, an opportunistic real estate fund managed by Blackstone Group; and Lone Star Fund XI, a private debt fund that invests in company debt and multifamily residential debt, managed by Lone Star Funds.

Within private equity, the board committed $150 million each to TSG 8, a growth equity fund managed by TSG Consumer Partners, and Warburg Pincus Global Growth, a private equity fund that targets sustainable value companies.

The board also committed $125 million to KKR European Fund V, a pan-European buyout fund managed by KKR & Co., $100 million to Flagship Pioneering Special Opportunities Fund II, a venture capital fund, and $100 million and $25 million to Greenspring Master G and Greenspring Micro II, respectively, private equity funds managed by Greenspring Associates.

Also, the board committed $75 million to FS Equity Partners VIII, a middle-market buyout fund managed by Freeman Spogli & Co., and $30 million and $20 million to 5AM Opportunities I and 5AM Ventures VI, respectively, both venture capital funds managed by 5AM Ventures.

As of Dec. 31, the pension fund's actual allocation was 22.6% domestic equities, 18% private equity, 16% international equities, 12.8% fixed income, 11.5% real return and opportunistic strategies, 10.1% real estate and infrastructure, 6.2% absolute return and 2.8% short-term investments.