New Jersey Division of Investment, Trenton, committed up to $800 million on behalf of the $73.5 billion New Jersey Pension Fund, whose assets and investments are managed by the division.
A unit of the State Treasury Department, the division announced the transactions Wednesday at a meeting of the State Investment Council, which develops policies governing pension fund investments.
The council committed up to $250 million to Blackstone TacOpps Residential Opportunities Vehicle, a global diversified credit strategy managed by Blackstone Group. Blackstone will acquire and manage “proprietary, new issue, non-agency residential loans and mortgage servicing rights,” said a division document presented at the meeting.
In real assets, it committed $150 million to Brookfield Capital Partners IV, managed by Brookfield Asset Management, which concentrates on investing in “opportunistic buyouts” and “underperforming businesses in real assets-related sectors,” according to a division document.
It also committed up to $100 million to Advent Global Private Equity VIII, managed by Advent International. The fund focuses on recapitalizations and control-oriented buyouts, investing primarily in Europe and North America.
The pension fund also made an additional commitment of up to $300 million to its separate account Knight TAO, a global diversified credit strategy managed by TPG. The division committed an initial $400 million in October 2014. The strategy “invests in overage” from certain other TPG special situation funds “in attractive risk-adjusted opportunities that fall outside” the other funds’ mandates, a division document said.
Separately, the division informed the state investment council that its representatives and management of Stone Milliner Macro Fund agreed in September to discontinue negotiations for a $250 million hedge fund investment.
The division approved the investment in July, pending completion of a contract. The fund, which invests in emerging and developed markets, is managed by Stone Milliner Asset Management. During contract negotiations, “it became clear that the fund was unwilling or unable to provide all of the legal documents required by the division,” said a division notice provided to the investment council.