State of Michigan Investment Board has approved $150m (€131.1m) worth of commitments split between an Ardian infrastructure fund and an open-ended US housing real estate fund managed by Avanath Capital Management.
The pension fund disclosed in a board meeting document that it committed $100m to ASF IX Infrastructure B, a fund that will invest primarily in limited partnership and general partnership interests in the infrastructure sector alongside co-investments. It also committed $50m to the Avanath Affordable Housing Renaissance Fund.
The global Ardian fund is targeting a $7.5bn raise with an expected net internal rate of return of 12% to 14%.
The Avanath affordable housing fund has reached a current size of $833m, according to sources familiar with the fund, and focuses on a blend of asset acquisitions and fresh development projects.
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