Michigan To Pledge Despite Being Over Range

On behalf of the State of Michigan Retirement Systems, Michigan’s Bureau of Investments will likely propose between $500 million to $600 million of private equity pledges over the next year, according to a spokesperson.

The $47 billion State of Michigan Retirement Systems has a target allocation of 16 percent to the asset class, which currently makes up about 19 percent its the total portfolio. The allowable range extends from 10 percent to 17 percent.

“The most interesting deals so far [this year] have been on the debt side,” said the spokesperson, “although this is changing as funds flow to this area and make it more competitive.”

About half the alternative portfolio, as of December, was committed to buyout funds, about 21 percent to special situation vehicles and about 10 percent to venture capital funds. The State of Michigan Retirement Systems also makes co-investments, which it has been doing since the early 1990s, said the spokesperson.

Michigan has previously backed Advent International, Glencoe Capital, Huron Capital Partners, The Riverside Company, Stockwell Capital (an adviser on co-investments) and Wind Point Partners. State Treasurer Robert Kleine must approve the investments.