New Jersey Division of Investment, which manages investments for the $76.8 billion New Jersey Pension Fund, Trenton, is expanding its relationship with Blackstone Group, adding several new commitments worth up to $1.05 billion.
Part of the new commitments will be offset by an approximately $400 million redemption from CT High Grade II, a real estate debt fund managed by Blackstone, according to a report presented by the division on Thursday at a meeting of the State Investment Council, Trenton.
“The division has almost a 10-year history of successfully investing with Blackstone,” said the report by Christopher McDonough, director of investments.
“Cumulatively, these investments have generated a weighted average net IRR (internal rate of return) of 19%, as of September 2014,” the report said. “The division has also been able to leverage the strategic relationship to produce significant fee savings and use the firm’s resources to assist in broader portfolio management.”
In the report, the division said it was committing:
- up to $250 million “in aggregate commitments to existing Blackstone Tactical Opportunities Fund-A (Private Equity); existing Blackstone Tactical Opportunities Fund-A (Real Assets); and a new separate account vehicle for real estate tactical opportunities”;
- An additional commitment of $150 million to existing GSO Energy Partners-A, managed by Blackstone’s credit division GSO Capital Partners;
- An additional commitment of $200 million to existing GSO Credit Partners-A;
- A commitment of $150 million to “a new separate account dedicated to core-plus real estate opportunities;” and
- Commitments to new commingled investment funds of up to $100 million each to Blackstone Real Estate Partners VIII and Blackstone Energy Partners II; and up to $50 million each to Blackstone Property Partners and Blackstone Capital Partners VII.
The division of investment also announced four commitments in private equity, direct lending and real estate totaling as much as $900 million, said documents presented Thursday at the council meeting.
The division committed up to $300 million to a TCW Group direct lending strategy, “allocating up to $150 million each to TCW Direct Lending LLC and a TCW direct lending separate account,” a division document said.
It also committed up to $300 million in a separate account managed by TGM Associates. The firm’s “sole focus (is) investing in and operating rental apartment communities throughout the United States,” said a division document.
In private equity, the division of investment committed up to $150 million each to TPG Growth III, which invests in small- and middle-market growth equity and buyout investment opportunities; and JLL Partners Fund VII, which a division document describes as “a middle-market firm focused on making private equity and distressed investments with experience doing so across various economic and market cycles.”