By Muskan Arora
The $110.4B Michigan Department of Treasury allocated $250M to its private equity portfolio, during the first quarter of the year.
Within the private equity portfolio, the pension plan invests $14.1B to its private equity division (PED), $5.5B to co-investments and $4.2B to venture capital. The plan remains bullish on buyout investments.
As of March 31, 2025, the pension plan allocated 22.7% to its private equity portfolio, against a target of 16%. The target ranges from 13% to 27%.
The pension plan allocated $75M each to GTCR Strategic Growth Fund II and KKR North America Fund XIV SCSp, a buyout fund.
The GTCR fund follows a value-added and growth-oriented approach and is focused on investments within business & consumer services, financial services and technology and healthcare among others.
The KKR fund focused on investments within industrial, consumer and retail, financial services and healthcare among other sectors with bullishness towards opportunistic and mid-market investments.
The remaining $100M were committed to Hg Saturn 4 A, a large-cap fund focused on technology and technology-enabled services across Europe and North America.
Trump’s tariffs have significantly impacted the transaction activity within PE, while increasing near-term risks associated with exits, which has led the pension to decrease its PE pacing, presented Peter Woodford, senior investment manager in the recent meeting materials.
“Continuation vehicles have a become popular tool for providing liquidity options to Limited Partners, extending hold periods but also allowing General Partners to maximize value for select assets,” added Woodford.
Additionally, within its absolute return portfolio, the plan committed $100M to TPG AG Credit Solutions Fund III, an all-weather model strategy focused on distressed and special-situation credit.
