Michigan Department of Treasury, Bureau of Investments, committed $1.1 billion to 11 alternative funds on behalf of the $74.5 billion Michigan Retirement Systems, East Lansing, in the quarter ended June 30.
In private equity, the bureau committed $888 million to nine funds, including a $250 million commitment to Advent Global Private Equity IX, a large buyout fund managed by Advent International.
Also within private equity, the bureau committed $150 million to Dover Street X, a global secondary fund managed, and $75 million to HarbourVest Credit Opportunities Fund II, a global junior credit fund, both managed by HarbourVest Partners; $100 million to Harvest Partners VIII, a middle-market buyout fund focused on North America; $85 million to Permira VII, a global large buyout fund; $75 million to Clearlake Opportunities Partners II, a non-control and special situations focused fund managed by Clearlake Capital Group; $75 million to Warburg Pincus China and Southeast Asia II, a growth equity fund; $65 million to Vista Equity Endeavor Fund II, a control-oriented lower middle-market growth fund managed by Vista Equity Partners; and $13 million to Accel London VI, a Europe-focused multistage venture capital fund managed.
In real return, opportunistic and absolute-return, a $177 million commitment was made to Castle Credit SMRS Holdings for an investment in an opportunistic credit fund that seeks to generate returns through current income and long-term capital appreciation. The fund targets idiosyncratic opportunities to provide financing at attractive valuations, securing high quality collateral and structural downside protection to minimize capital loss.
Within real estate and infrastructure, the bureau committed $50 million to GSO Energy Select Opportunities Fund II, a commingled fund specializing in debt and equity opportunities in the energy infrastructure sector managed by GSO Capital Partners.
As of June 30, the pension fund's actual allocation was 22.3% domestic equities, 18% private equity, 16.3% international equities, 12.7% fixed income, 10.7% real return and opportunistic strategies, 9.4% real estate and infrastructure, 5.7% absolute return and 4.9% short-term investments.
