State of Michigan Retirement System has approved a $300m (€279.5m) commitment to Lone Star Fund XII, the pension fund disclosed in a meeting document.
Fundraising details of the fund are currently unknown.
Lone Star Funds declined a request for comment. The manager raised $8.1bn at the close of Lone Star Fund XI, the previous fund in the series.
Lone Star Fund XI invested in a number of regions including the US, Europe and Japan.
State of Michigan Retirement said it expects the latest fund to target opportunistic debt and equity investments that primarily support the housing sector including investments in financially oriented or other operating companies.
The pension fund also disclosed it made a $50m commitment to the Avanath Affordable Housing Renaissance Fund in the current quarter.
The Renaissance Fund is an open-ended investment fund that invests in affordable multi-family housing in the US.
The fund’s manager Avanath Capital Management told IPE Real Assets that the fund has a net asset value of $653m, with $125m of uncalled commitments.
The fund is expected to add two assets added to its portfolio later this month to bring its total properties to 28.
The fund is a core-plus fund that will also seek value-add opportunities as part of its growth strategy.
The Renaissance Fund targets a 10% to 11% net internal rate of return with an annualised distribution yield of 4% to 5%.
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