Michigan Department of Treasury, Bureau of Investments, disclosed nearly $1.6 billion in second-quarter commitments on behalf of the $94.1 billion Michigan Retirement Systems, East Lansing, according to documents from its meeting Thursday.
In private equity, the bureau committed $747.5 million to 12 funds, including $150 million to Insight Partners XII, a growth equity fund, and $125 million to KKR North America Fund XIII, a large-cap buyout fund managed by KKR & Co.
The bureau also disclosed private equity commitments of $100 million to Apax Digital Fund II, a growth equity fund focused on the U.S. and Europe managed by Apax Partners; $100 million to Genstar Capital Partners X, a U.S.-focused middle-market buyout fund, and $25 million to Genstar X Opportunities Fund I, a priority co-investment vehicle; $100 million to Hellman & Friedman Capital Partners X, a global megacap buyout fund; $60 million to Veritas Capital Vantage Fund, a U.S. focused middle-market buyout fund.
Other private equity investments were $25 million to TI Platform Fund III, a seed-stage venture capital fund-of-funds managed by Trusted Insight; $15 million to Meritech Capital Partners Franchise Fund, a late-stage venture capital fund; and $25 million to Accel Growth Fund VI, a global growth-stage venture capital fund, $12.5 million to Accel London VII, an early-stage Europe-focused venture capital fund, and $10 million to Accel XV, an early-stage U.S.-focused venture capital fund, all managed by Accel Partners.
In absolute return, $150 million was committed to Acacia, an equity co-investment with Sixth Street Partners in a seasoned and diversified insurance business, and $100 million to PIMCO Aviation Co-Invest Vehicle Onshore Feeder, an aircraft leasing joint venture investment vehicle created by Pacific Investment Management Co. and GE Capital Aviation Services.
In real estate and infrastructure, the bureau committed $100 million to Carlyle Realty Partners IX, a closed-end North American multistrategy real estate fund managed by Carlyle Investment Management; $100 million to Heitman Global Real Estate Partners II, an open-end global core, multistrategy real estate fund managed by Heitman Global Real Estate Partners; $100 million to KKR Global Infrastructure Investors IV (USD) SCSp, a closed-end global infrastructure fund managed by KKR Alternative Investment Management Unlimited Co.; $100 million to Lion Industrial Trust, an open-end vehicle investing in the U.S. industrial real estate sector managed by Clarion Partners; and $75 million to Transwestern Strategic Partners Fund III, a closed-end vehicle in multistrategy U.S. real estate managed by Transwestern Investment Group.
And in real return and opportunistic, the bureau made a $100 million follow-on commitment to HPS Red Cedar Fund, which focuses on direct lending to upper-middle market, performing companies via senior secured loans and is managed by Highbridge Principal Strategies. The bureau originally committed $250 million to the fund in 2016.
As of June 30, the Michigan Retirement Systems' actual allocation was 23.6% domestic equity, 22.1% private equity, 17.1% international equity, 12.6% real return and opportunistic, 10.2% fixed income, 6.8% real estate and infrastructure, 5.1% absolute return and the rest in short-term investments.
