New Jersey Division of Investment commits $900 million to alternatives managers

Timothy Walsh
Timothy Walsh, director of the New Jersey Division of Investment

New Jersey Division of Investment, Trenton, made $900 million in commitments to alternative investments.

The commitments were announced by Timothy Walsh, director of the Division of Investment, at a meeting Thursday of the State Investment Council, which formulates investment policies for the division and which consults with the director. All are subject to completion of contracts.

The Division of Investment manages the assets of seven state pension funds that make up the $72.5 billion New Jersey Pension Fund.

The division plans a $500 million commitment to Blackstone Real Estate Partners Asia. This is Blackstone's “first real estate vehicle focused exclusively on the Asia-Pacific region,” according to a March 15 report to the council from Mr. Walsh. The fund will focus on China, India, Australia and Japan. The division previously committed $518.6 million to three other Blackstone real estate funds.

The division will also commit up to $200 million to the ValueAct Co-Invest International Fund, an activist hedge fund that seeks to take large stakes in public companies “alongside other investment vehicles sponsored by” hedge fund manager ValueAct Capital, according to the report. The strategy is to “make it easier to acquire a board seat and be an effective voice for change to unlock value,” the report said.

The division previously committed $150 million to another ValueAct fund.

The division also will commit $200 million to KPS Special Situations Fund IV, a private equity distressed buyout fund that focuses on manufacturing companies in North American and Europe, according to the report. KPS Capital Partners specializes in bankruptcies, restructurings and employee buyouts.

The division previously committed $25 million to another KPS fund.