New Jersey Division of Investment, Trenton, which manages investments for the $76.8 billion New Jersey Pension Fund, made $1.3 billion in commitments and investments to alternative, credit and real estate investments, confirmed William Quinn, a Treasury spokesman.
The division, a unit of the state treasury department, announced its selections Monday at a meeting of the New Jersey State Investment Council, which advises the division.
The division made a first-time $300 million investment in a separate account run by hedge fund manager Solus Alternative Asset Management. According to a document presented at the investment council meeting, Solus focuses on investments in the U.S. and Europe that include distressed debt, high-yield bank loans and equity.
The division also made five follow-on commitments of $100 million to five hedge funds “in an effort to reduce the overall risk of the investment portfolio and increase downside protection,” the division document said. It described the hedge fund managers as having “demonstrated diversifying qualities during periods of market dislocation.”
The hedge funds are MKP Opportunity Fund, Brevan Howard Master Fund, Claren Road Credit Master Fund, Scopia PX, and BlueCrest Capital International Fund.
The division previously invested $150 million each with MKP Capital Management, Claren Road Asset Management and Scopia Capital Fund Management; and it previously invested $200 million each with BlueCrest Capital Management and Brevan Howard Asset Management.
The division made two new private equity commitments: e125 million ($170 million) to AnaCap Financial Partners III, which focuses on European midmarket financial services; and $100 million to TCV VIII, which focuses on information technology and is managed by Technology Crossover Ventures.
The division also made a commitment of $100 million in TPG Opportunities Partners III, which a division document described as “a special situations investment fund, focusing on deep value opportunities across the credit cycle” including “asset special situations, corporate distressed-for-control, and corporate dislocations.” It is managed by TPG Capital.
And the division made a $140 million investment in the Wheelock Real Estate Investment Fund II LP, managed by the Wheelock Street Capital. The division previously invested $100 million in another Wheelock real estate investment fund.