New Jersey Division of Investment, which makes investments for the $78.5 billion New Jersey Pension Fund, Trenton, has approved two commitments for up to $124 million and has withdrawn two commitments worth $200 million.
The division approved a private equity commitment of up to $100 million to MBK Partners Fund V. The buyout fund focuses on stable defensive businesses in northern Asia, according to a division report presented Wednesday at a meeting of the State Investment Council, which formulates policies for the division of investment's pension fund activities.
The division made a commitment to another MBK fund in 2016.
The division also approved a $24 million private equity commitment to TPG Dragon Co-Investment. The division report describes this as a co-investment vehicle with TPG Growth IV, which is "the primary investment vehicle for global small- and middle-market growth equity and buyout investments," concentrating on the U.S. and Asia markets.
The division also reported that it had canceled commitments to KPS Special Situations Fund V, $175 million, and KPS Special Situations Mid-Cap Fund, $25 million, both managed by KPS Capital Partners.
In September, the division announced the commitments. However, in a report Wednesday to the State Investment Council, the division said that "after extensive negotiations," the division and KPS "were unable to reach agreement on the terms of the legal documents, and the division did not participate in the funds' October closing."
The investment division also reported that the New Jersey Pension Fund had a net return on investment of 0.2% for the three months ended Sept. 30, the first quarter of the current fiscal year. The benchmark was 1.15%.
For the 12 months ended Sept. 30, the net return was 3.73% vs. a benchmark of 4.97%. For multiyear periods ended Sept. 30, the annualized net return for three years was 8.39% vs. a benchmark of 8.66%; for five years, 6.42% (benchmark 6.57%); for 10 years, 8.1% (benchmark 7.72%).
