Michigan commits $751 mln to seven PE funds

  • Backs Blackstone for $300 mln 
  • Commits $150 mln to Coller Capital
  • Also commits $505 mln to real estate, infrastructure

Michigan, which valued its private equity portfolio at approximately $9.9 billion, disclosed commitments to seven new funds in its report. Michigan’s largest allocation went to Blackstone’s latest flagship vehicle, a $17.5 billion mega-fund that received a $300 million pledge from Michigan.

The $61.7 billion retirement system also committed $150 million to Coller Capital’s latest global secondaries fund, which is targeting $5.5 billion with a $6 billion hard cap, and $111 million to Carlyle Europe Partners IV, a 3.75 billion euro ($4.2 billion) vehicle that closed in July.

In addition, Michigan disclosed a $75 million commitment to Centerbridge Partners’ third flagship fund, $45 million to EnCap Energy Capital Fund X, $40 million to Peninsula Capital Partners’ sixth flagship mezzanine fund and $30 million to Arboretum Ventures VI.

Michigan had a 16 percent allocation to private equity as of June 30, according to the investment report, 2 percentage points short of its target allocation to the asset class.

The pension also committed $505 million to real estate and infrastructure funds during the second quarter, which included $50 million each to ArcLight Energy Partners Fund VI and GSO Energy Select Opportunities Fund, according to Michigan documents.

Michigan Retirement Systems had a 9.2 percent allocation to real estate and infrastructure assets as of June 30, according to its investment report. The retirement system set a 10 percent allocation for those types of funds.

Action Item: For more on Michigan’s PE portfolio check out its Q3 investment report: http://www.michigan.gov/documents/treasury/FINAL_090315_499315_7.pdf