New Jersey Division of Investment, Trenton, committed a total of up to $1.745 billion to new and existing alternatives investments, confirmed spokesman Andrew Pratt.
The division, which oversees the state's seven pension funds with a combined $69.9 billion, committed an additional $600 million in total to an existing separate account and four new separate accounts managed by Och-Ziff Capital Management Group.
It committed up to an additional $200 million to the existing bank loan separate account Och-Ziff Structured Credit, the division had about $625 million invested as of May 31.
The division made first-time commitments of from $200 million to $500 million to bank loan fund OZSC II; up to $400 million to a credit strategy hedge fund; up to $200 million in a real estate account; and up to $150 million in a real assets account.
The division will decide how much to place in each Och-Ziff fund as opportunities arise, Mr. Pratt said in a telephone interview.
Also, $100 million was redeemed from hedge fund OZ Domestic Partners II, which had $213 million from the division as of May 31.
Separately, the division committed $850 million to hedge funds. It made additional commitments of $250 million each to a multistrategy fund of funds managed by Arden Capital Management and RC Woodley Park, a fund of funds managed by the Rock Creek Group. That brings the total commitment to $500 million to Arden and $750 million to Rock Creek. It also made first-time commitments of up to $150 million to MKP Opportunity Partners, a global macro fund managed by MKP Capital Management; and $200 million to multistrategy hedge fund Dyal Capital Partners.
The division also committed up to $100 million in Roark Capital Partners III, a middle-market buyout fund, and up to $75 million in related co-investments structured to invest alongside the main fund. It also approved a similar arrangement with Real Estate Capital Asia Partners III, committing up to $80 million in the opportunistic non-core real estate fund, and up to $40 million in related co-investments.
Also on Thursday, the division reported that the state pension system returned 2.26% for the 12 months ended June 30, compared to its benchmark return of 0.25%. The liquidity and income asset classes were the top performers, both at 12.64%, followed by real return, 4.13%; capital preservation, 2.86%; and global growth, -4.36%.
“The outperformance for the fiscal year was primarily driven by an overweight to U.S. stocks vs. non-U.S. stocks, an underweight to commodities, and strong relative performance by the fixed-income group,” according to a Thursday meeting of the New Jersey State Investment Council, which oversees the state pension assets.
The system returned 11% for the three years ended June 30, 2.4% for five years and 6.39% for 10 years, beating the benchmark by an average 95 basis points for each period. All multiyear returns are annualized.