The Michigan Department of Treasury, Bureau of Investments, committed $30 million to ASF VII Infrastructure (Fund B) in the quarter ended June 30 on behalf of the $58.7 billion Michigan Retirement Systems, according to its quarterly investment reports for 2017.
ASF VII Infrastructure (Fund B) is managed by Ardian, a France-based independent private equity investment company. Since 2005, Ardian has invested in private companies running infrastructure projects. It invests in the full range of regulated and unregulated core infrastructure assets. These include gas and electricity grids, transport infrastructures such as toll roads, railways, airports, and renewable energy assets.
The firm’s first secondaries fund, ASF VI Infrastructure, raised $525 million in 2015 as an add-on to its 2014-vintage AXA Secondary Fund VI secondaries fund.
Currently, infrastructure has a relatively low correlation with other asset classes and offers protection against inflation and economic cyclicality, according to Ardian. More importantly, yields are also steady and have good long-term viability.
Ardian has committed €3.4 billion ($4 billion) into infrastructure investments since 2005, consisting of 22 investments. The firm currently manages $9 billion in infrastructure assets.
As of June 30, 2017, Michigan PSERS’ target allocation to real estate/infrastructure was 10.5 percent and its actual asset allocation to real estate/infrastructure was 9.8 percent.
