New Jersey Division of Investment, Trenton, announced a new strategic relationship with Blackstone Group in which the private equity manager will run up to $1.8 billion, confirmed spokesman Andrew Pratt.
The division, which oversees $69.6 billion for the state's seven pension funds, also made separate new and follow-on commitments Thursday of up to $962 million to other funds, according to memos prepared for the New Jersey State Investment Council meeting.
The council develops policies governing investments for the division.
The strategic relationship consists of investments in three commingled funds: $150 million to Blackstone Energy Partners, $100 million to GSO Special Situations Fund; and $50 million to Blackstone Capital Partners VI. The partnership will also invest in four opportunistic separate accounts: up to a combined $750 million to BX-NJ Tactical Private Equity Opportunities and BX-NJ Tactical Real Assets Opportunities (with an aggregate cap of $1 billion), $250 million to GSO Energy (with a $500 million cap), and up to $250 million to GSO Credit Opportunities Fund.
In a memo to the council, Timothy Walsh, director of the Division of Investment, cited the division's long history with Blackstone in developing the strategic relationship, with benefits including expanded investment opportunities, discounted fee structure/alignment and “strong governance through the division's ability to retain influence over separate accounts.”
The division's total commitments to Blackstone Group in 2011 is now at $2.5 billion, which the firm in a statement said was the largest single-year commitment by any investor in its history.
The council also approved the new commitments of $300 million to Cerberus/NJ Loan Fund; $200 million to Exeter Core Industrial Venture; $150 million to Regiment Capital Fund; and up to $100 million to American Industrial Partners Capital Fund V; and $25 million to General Catalyst Group VI.
Also approved were follow-on commitments of up to $150 million to Arden Institutional Advisors and $36 million to Blackstone Real Estate Partners VI .