New Jersey Division of Investment, Trenton, committed a total of $1.275 billion to alternatives funds.
The division committed $300 million to Lone Star Fund VII, a real estate fund that will invest in, among other things, single-family residential loans and mortgage-backed securities, and $100 million to Lone Star Real Estate Fund II, which will invest in commercial real estate and commercial real estate-related investments.
The division also committed $200 million each to TPG Specialty Lending for bank loans; Vista Equity Partners Fund IV for investing in enterprise software companies, NJAI Fund II, which invests in Asia-Pacific funds, and Rock Creek Group-RC Woodley Park Fund, which will focus on investing in diversified commodities hedge funds. Since 2006, the division has invested about $520 million in several other Rock Creek mandates.
The division also made a $75 million add-on investment to Ascend Partners Fund II, a hedge fund that employs a long-short equity strategy, raising it to $164 million.
The division, a unit of the state Treasury Department, manages investments for the $72.9 billion state pension system.