The New Jersey division of investment, which handles investments for the New Jersey Pension Fund, Trenton, made five alternatives commitments totaling up to $1 billion.
Representatives of the division reported the commitments in documents presented Wednesday at a virtual meeting of the State Investment Council, which formulates policies for the division.
According to the documents, the commitments are:
- Up to €200 million ($244 million) for ICG Europe Fund VIII and up to €100 million ($122 million) for a related co-investment fund. Both funds are managed by Intermediate Capital Group that invest in subordinated debt, senior debt, structured debt and equity in upper middle-market companies among many European countries.
- Up to $200 million in Prime Property Fund, a real estate fund managed by Morgan Stanley. The fund will invest in several sectors, including offices, apartments, industrial and retail. This is an existing relationship for the pension fund.
- Up to €150 million ($183 million) to CVC Credit Partners EU DL II Co-Invest Fund. The global diversified credit fund "will hold the reallocation of investments from, and invest alongside, CVC Credit Partners European Direct Lending Fund II," the report said. The focus is on "privately negotiated senior secured loans to European middle market companies." CVC Partners is an existing relationship for the pension fund.
- Up to $160 million to EQT Infrastructure V. The real asset fund will make investments in telecommunications, transportation, logistics and environmental sectors. It will make investments in the energy sector excluding the oil and gas industries. The fund will concentrate on Europe, the United Kingdom and North America. EQT is an existing relationship for the pension fund.
- Up to $100 million to Excellere Capital Fund IV, managed by Excellere Capital Management. The private equity fund will invest in lower middle-market companies in the health care, business services and industrial markets. Excellere is an existing relationship for the pension fund.
Separately, the division reported that the New Jersey Pension Fund had assets of $88.2 billion as of March 31, the first nine months of the current fiscal year. (By April 30, assets had climbed to $90.7 billion). The return on investment, net of fees, for the first nine months of the fiscal year was 19.06% vs. a benchmark of 17.83%.
The division also provided annualized historical data, net of fees, based on periods as of March 31:
- The return was 29.08% vs. a benchmark of 27.71% for the 12 months ended March 31.
- The three year annualized return was 9.37% vs. a benchmark of 9.88%.
- The five-year annualized return was 10.07% compared to a benchmark of 10.53%.
- The 10-year annualized return of 8.29% exceeded the benchmark of 8.08%.
- The 20-year annualized return of 6.80% topped the benchmark of 6.51%.