Michigan Department of Treasury, Bureau of Investments, committed $950 million to alternative funds on behalf of the $77.7 billion Michigan Retirement Systems, East Lansing, in the quarter ended Dec. 31.
In private equity, the bureau committed $515 million to six funds, including $250 million to Green Equity Investors VIII, an upper-middle-market buyout fund, and $100 million to Jade Equity Investors, a middle-market buyout fund, each managed by Leonard Green & Partners. It also committed $60 million to Advent International Latin American Private Equity Fund VII, a buyout fund focused on Latin America; and $35 million each to FirstMark Capital Opportunity Fund III and FirstMark Capital Fund V, venture capital funds managed by FirstMark Capital Partners, and to SKCP Catalyst Fund I-A, a lower middle-market buyout fund, managed by SK Capital Partners.
In real estate and infrastructure, $100 million was committed to DM2501, a separately managed account that will focus on investments in smaller real estate investment opportunities, managed by Domain Capital Advisors. Also, $35 million went to Avanath Affordable Housing IV, a closed-end commingled fund specializing in investments in the affordable/workforce multifamily housing sector in the U.S., managed by Avanath Capital Management.
In real return and opportunistic, the bureau made three $100 million commitments, including two to funds under the TPG Sixth Street Partners umbrella: TSSP Agriculture Partners (A), a comingled fund that invests in niche agriculture opportunities, and TSSP Institutional Credit Partners III, a comingled fund that retains an equity investment in a series of collateralized loan obligations. The last commitment went to Abernathy Fund II, a separately managed account allowing the Michigan Retirement Systems to partner with Domain Capital Advisors on niche investment opportunities.
As of Dec. 31, the Michigan Retirement Systems' actual allocation was 22.7% domestic equities, 17.8% private equity, 16.9% international equities, 13.3% fixed income, 11.1% real return and opportunistic strategies, 9.1% real estate and infrastructure, 5% absolute return and 4.1% short-term investments.
