Michigan makes debt secondaries purchases

The US pension acquired four stakes in Crescent Capital and Czech Asset Management funds, documents from its latest investment committee meeting show.

State of Michigan Retirement Systems acquired stakes in four debt funds in the first quarter of the year, according to documents from the pension’s latest quarterly report.

PDI sister publication Secondaries Investor has reported that the US pension system’s purchases comprise a $10 million stake in a 2011-vintage mid-market direct lending fund managed by Czech Asset Management and $6.2 million worth of interests in three Crescent Capital-managed funds, documents from Michigan’s 8 June investment advisory committee meeting show.

The Czech-managed fund, SJC Onshore Direct Lending Fund, is a 2010-vintage $1.03 billion vehicle, according to data from sister title Private Equity International. A spokesman for Old Greenwich-headquartered Czech confirmed the deal.

The Crescent Capital-managed funds were the 2001-vintage $1.2 billion TCW/Crescent Mezzanine Partners III, the 2006-vintage $1.6 billion TCW/Crescent Mezzanine Partners IV and the 2008-vintage $2.9 billion TCW/Crescent Mezzanine Partners V, the documents show.

Public pensions were the least active buyers of secondaries stakes last year, accounting for just over 1 percent of buyers, according to a 2016 volume report by Setter Capital. Their purchases are sporadic – in March it emerged that South Dakota Retirement System increased its exposure to Blackstone’s 2015-vintage energy fund by acquiring a $35 million original commitment to the vehicle, while New Mexico Educational Retirement Board said in November it was interested in acquiring secondaries stakes in Lone Star Funds’ 10th flagship fund.

Crescent Capital declined to comment.