Michigan Cites "Very Slow" PE Pace Amid Rebalancing; Advent Targets $3B Mid-Market Debut

Michigan Cites "Very Slow" PE Pace Amid Rebalancing

The State of Michigan Investment Board is holding new private equity commitments to roughly $100M – with officials calling the pace "very slow" during a Sept. 23 board meeting – while directing more capital toward fixed income and absolute return ahead of rising liquidity needs as its school employees' pension plan approaches full funding. The system added slightly less than $300M to real estate and infrastructure over the same period and has been a net seller of public equities even as strong markets pushed those allocations higher.

In other LP news, Kansas Public Employees Retirement System and consultant Mercer recommended $135M to American Industrial Partners Capital IX and $100M to EQT Exeter Industrial Value Fund VII; and the City of Atlanta Pension Investment Board is weighing a deeper review of its fixed income positioning as rising rates alter the appeal of bonds versus cash, with consultant Marquette Associates noting the pension's assets have grown by approximately $2.5B over six years.

On the GP fundraising side, Advent International launched Advent Mid-Market Private Equity, targeting $3B for its debut dedicated mid-market buyout vehicle; Bessemer Venture Partners disclosed a $5.75B raise split between $1.75B for early-stage investing and $4B for growth, the latter aimed at AI companies delaying IPOs; and Vida Ventures is raising up to $500M for its fourth flagship life sciences fund following a record year of portfolio exits.

In leadership developments, Brown University named deputy CIO Joshua Kennedy as its next CIO, succeeding Jane Dietze, who is scheduled to become founding CIO of the Fund for Science and Technology; the City of Austin Employees' Retirement System named Jaime Aguirre director of private equity; and Border to Coast Pensions Partnership appointed Luke Baker as portfolio manager to lead its local investment program.