Michigan Department of Treasury, Bureau of Investments, disclosed $805 million in fourth-quarter commitments on behalf of the $84.2 billion Michigan Retirement Systems, East Lansing, according to documents from its meeting Thursday.
In absolute return, the bureau committed $200 million to AG Essential Housing, a credit fund managed by Angelo, Gordon & Co. focused on financing the production-ready land inventory of large homebuilders; and $100 million to Kayne CLO Partners Fund II, a credit fund managed by Kayne Anderson Capital Advisors that invests in majority stakes in Kayne-managed collateralized loan obligation equity/warehouse facilities.
In real return and opportunistic, $125 million was committed to Sixth Street Specialty Lending Europe II (USD Feeder), a commingled fund focused on originating European middle-market credit opportunities.
Within the pension fund's real estate and infrastructure portfolio, the bureau committed $100 million to Kayne Renewable Opportunities Partners, a closed-end commingled fund specializing in renewable infrastructure that is also managed by Kayne Anderson Capital Advisors; $100 million to Rialto Real Estate Fund IV-Debt, a closed-end commingled fund managed by Rialto Capital Management that specializes in credit strategies; and €32.5 million ($40 million) in BGO Europe III Co-Investment, a closed-end co-investment vehicle managed by BentallGreenOak that invests in an Italian logistics portfolio alongside Michigan's previous commitment to GreenOak Europe III. In the first quarter of 2020, the bureau committed €75 million to GreenOak Europe III.
In private equity, the bureau committed $50 million to Axiom Asia Co-Investment Fund II, a co-investment overage fund to Axiom Asia VI managed by Axiom Asia Private Capital. In 2018, it committed $50 million each to Axiom Asia V and Axiom Asia Co-Investment Fund I.
Also in private equity, $50 million was committed to GTCR Fund XIII, an upper-middle market buyout fund; and $40 million to Accel Leaders Fund 3, a late-stage venture capital/growth fund.
As of Dec. 31, the Michigan Retirement Systems' actual allocation was 22.6% domestic equity, 20.3% private equity, 17.3% international equity, 12.7% real return and opportunistic strategies, 11.5% fixed income, 7.4% real estate and infrastructure, 4.2% absolute return and 4% short-term investments.