Michigan Department of Treasury, Bureau of Investments, committed $1.07 billion to alternative funds on behalf of the $74.8 billion Michigan Retirement Systems, East Lansing, in the quarter ended Sept. 30.
In private equity, the bureau committed $315 million to five funds, including $150 million to Apax X USD, a middle-market buyout fund managed by Apax Partners. It also committed $100 million to Veritas Capital Fund VII, a buyout fund focused on the middle market managed by Veritas Capital Fund Management; $25 million to Lightspeed Opportunity Fund, a late-stage venture/growth fund managed by Lightspeed Venture Partners; $25 million to Science Ventures Fund III, an early-stage technology venture fund managed by Science Ventures Management; and $15 million to Riverside Micro-Cap Fund IV B, a lower-middle-market supplemental fund managed by Riverside Co.
In real return and opportunistic, a $250 million commitment was made to Blackstone Strategic Capital Holdings II, a commingled fund that invests in minority stakes of asset management firms, managed by Blackstone Strategic Capital Advisors. Separately, a $100 million co-investment went to the same fund in a separately managed account, allowing Michigan to invest in select opportunities alongside the fund.
Also in real return and opportunistic, the bureau committed $100 million to AG Credit Solutions Fund, a credit fund that seeks to provide financing solutions to firms across public and private credit markets that are facing stressed or distressed situations and is managed by Angelo, Gordon & Co.; $75 million to Orion Mine Finance Fund III, a commingled fund strategy that seeks to provide comprehensive capital solutions for the construction of mid- to late-stage mine projects managed by Orion Resource Partners ; and $75 million to Turning Rock Fund I, an opportunistic credit fund focused on providing capital to North American lower-middle-market privately held businesses managed by Turning Rock Partners.
Within real estate and infrastructure, the bureau committed $100 million to Invesco Strategic Opportunities III, a closed-end fund specializing in opportunistic investments in the U.S. and Europe across real estate sectors including debt; and $50 million to AEW Senior Housing Investors IV, a closed-end fund specializing in investments in the senior housing market in the U.S. managed by AEW Capital Management.
As of Sept. 30, the Michigan Retirement Systems' actual allocation was 22.5% domestic equities, 18.6% private equity, 15.9% international equities, 13.6% fixed income, 10.8% real return and opportunistic strategies, 9.5% real estate and infrastructure, 5.5% absolute return and 3.6% short-term investments.
