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State of Michigan Retirement Systems
Pension fund · East Lansing, United States
Who State of Michigan Retirement Systems is.
Where the institution came from, whose capital it manages, and how that capital is allocated — from Dealroom's LP research.
Historical Background
- The State of Michigan Retirement Systems (SMRS) is the investment manager for the state's various public employee retirement plans, including those for state employees, public school employees, state police, and judges.
- The Michigan State Employees' Retirement System (SERS), a major component of the overall system, was established by Public Act 240 of 1943 to provide retirement, survivor, and disability benefits to state government employees.
- The Office of Retirement Services (ORS) was created to administer the services for the various retirement systems, which were established through separate public acts passed by the Michigan Legislature.
Source of Capital
- The system's capital is sourced from the pension funds of Michigan's public sector employees.
- These funds are a combination of employee and employer contributions, as well as investment returns generated by the system's assets.
Major Events
- In 1997, Michigan closed its traditional defined-benefit pension plan to new state employees and introduced a defined-contribution 401(k)-style plan for all employees hired on or after March 31, 1997.
- In 2010, the state enacted reforms requiring most members to contribute more toward their pensions or accept a reduced benefit in retirement.
- A 2017 reform gave new school employees a choice between an improved 401(k)-style plan and a hybrid pension/defined contribution plan, aiming to reduce the system's long-term unfunded liabilities.
Allocation Strategy
- The system invests across a diversified range of asset classes, including domestic and international equities, fixed income, real estate, and alternative investments.
- Alternative investments are a significant component of the portfolio, which includes allocations to private equity, venture capital, and absolute return strategies.
- The investment division, working with the State Treasurer, sets long-term strategic asset allocation targets to ensure the payment of future retirement benefits. For fiscal year 2023, the target allocation for private equity was 18% and for real and opportunistic assets it was 20%.
The funds State of Michigan Retirement Systems backs.
State of Michigan Retirement Systems is a limited partner in 58 funds. 12 of them place in the Power Law Investor Ranking, and the best-ranked are shown here.
How State of Michigan Retirement Systems’ fund book is spread.
The 58 funds State of Michigan Retirement Systems backs, by where the manager is headquartered and how many funds that manager has raised.
Where those managers are based
By fund headquarters.
- North America 5391%
- Europe 59%
- Rest of world 00%
United States 53 · France 2 · United Kingdom 2 · Ireland 1
How established those managers are
Managers grouped by how many funds they have raised. 10 emerging (three funds or fewer), 24 established — across the 34 of 58 with a fund history on record.
State of Michigan Retirement Systems’ biggest current holdings.
An estimate of State of Michigan Retirement Systems’ largest live positions — disclosed shareholding × Dealroom’s latest valuation — across 1 companies where State of Michigan Retirement Systems is a named shareholder, worth about $76M in estimated equity value.
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1
Inari
3.5%
$2.2B
$76M
Estimated value = State of Michigan Retirement Systems’ disclosed ownership % × Dealroom’s latest company valuation; direct named stakes only, exited positions excluded. Figures are indicative, not reported marks. See the underlying cap tables on Dealroom →
The companies State of Michigan Retirement Systems backs directly.
State of Michigan Retirement Systems holds 4 companies directly, separate from the funds it commits to as a limited partner.
How those direct holdings break down by headquarters country, sector, entry stage and current growth stage. "Stage entered" is the first priced round the investor joined, derived from the investor’s transaction history.
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USA3
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Austria1
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Health2
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Chemicals1
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Food1
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Real Estate1
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Series B+3
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Seed1
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Late Growth4
Where State of Michigan Retirement Systems’ portfolio founders come from.
16 founders across the 4 highest-funded portfolio companies — by current location, university attended, and the companies they worked at before founding. Sourced from the founder records the API links to each portfolio company.
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United States10
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Germany2
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Austria1
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Liechtenstein1
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Switzerland1
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Massachusetts Institute of Technology4
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Harvard University2
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California Polytechnic State University1
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Caltech, California Institute of Technology1
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Harvard Medical School1
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Heilongjiang University1
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IE Business School1
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Johns Hopkins University1
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Louisiana State University1
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McGill University1
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Massachusetts Institute of Technology2
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Syngenta2
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9Cookies1
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AGBU1
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Agile Devices1
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Agrinos1
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Alltrna1
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Bayes Esports1
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BIND Therapeutics1
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Biognosys1
Other LPs.
Other pension funds in the Power Law LP ranking, closest to State of Michigan Retirement Systems by combined power-law score — North America first, then the nearest worldwide.