New Jersey Division of Investment, which handles investments for the $87.5 billion New Jersey Pension Fund, Trenton, made four commitments to alternative investments totaling up to $1.2 billion, the division announced Wednesday.
The commitments — two private equity, one private credit and one real estate — were described in a report presented at the quarterly meeting of the State Investment Council, which governs investing policies for the division.
A private equity commitment for up to €250 million ($275 million) was made to CVC Capital Partners IX, a buyout fund that focuses on leveraged buyouts of medium to large businesses in Europe and North America.
Also, $150 million was committed to American Industrial Capital Partners Fund VIII, buyout fund managed by American Industrial Partners that "will seek control positions in North American headquartered industrial companies with sales greater than $500 million that AIP believes are underperforming their profit potential," the division report said.
The division also announced a two-part private credit commitment to HPS Investment Partners: $350 million for a separately managed account and $200 million for a co-investment vehicle. The primary focus for these commitments is senior secured direct lending in "non-sponsored, large and upper middle market companies primarily in North America," the division report said. A special situations component of the commitments "will target distressed opportunities that span public and private markets, capital structures, and geographies."
The division also will commit up to $250 million to its real estate portfolio via a GCM Grosvenor Emerging Manager Separately Managed Account, part of the division's emerging managers program. The goal is to "diversify the division's real estate portfolio with mid-market assets," the report said.
The division also reported that the New Jersey Pension Fund's unaudited net return on investment for the three months ended March 31, the third quarter of the current fiscal year, was 4.3% vs. a benchmark of 3.8%
Among other unaudited figures, the 12-month net return as of March 31 was -3.8% vs. a benchmark of -3.6%.
The annualized net return for the three years ended March 31, was 10.6% compared with a benchmark of 11.1%. The annualized net return for the five years ended March 31 was 6.5% vs. a benchmark of 7.3%. The annualized net return for the 10 years ended March 31 was 7.2% vs. a benchmark of 7.4%.