State of Michigan Retirement Systems makes nearly $1 billion in commitments

The US retirement system has backed ten private equity funds.

Institution: State of Michigan Retirement Systems
Headquarters: Lansing, United States
Total AUM: $74.46bn
Allocation to Alternatives: 38.1%
Bitesize: $100-200m

Michigan Department of Treasury, the investment fiduciary of the State of Michigan Retirement Systems, has committed $937.9 million to ten private equity funds in the second quarter of 2019, according to a recently released quarterly investment report.

The commitments comprise of $250 million to Advent International GPE IX, $150 million to Dover Street X, $100 million to Harvest Partners VIII, $85.4 million to Permira VII, $75 million to Clearlake Opportunities Partners II, $75 million to HarbourVest Credit Opportunities Fund II, $75 million to Warburg Pincus China-Southeast Asia II, $65 million to Vista Equity Endeavor Fund II and $12.5 million to Accel London VI and $50 million to GSO Energy Select Opportunities Fund II.

Additionally, in the next twelve months the retirement system will continue to “tilt slightly toward the middle and lower-middle market” as detailed in board meeting documents. Co-investments continue to play an important role in its investment strategy.

The $74.46 billion public pension currently allocates 38.1% of its funds to alternatives.

As illustrated in the charts below, SMRS’ allocation to private equity currently stands at 18.0 percent.

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