New Jersey Division of Investment made eight new alternative investment commitments totaling up to $2 billion for the $95.1 billion New Jersey Pension Fund, Trenton.
The division, which manages investments for the pension fund, announced the commitments Jan. 31 at a quarterly meeting of the State Investment Council, which formulates investment policies for the division.
The division made three absolute-return commitments totaling up to $900 million:
- Up to $300 million to Man NJ Solutions, managed by Man Group, as part of New Jersey's risk-mitigation strategy. This is a customized fund-of-one portfolio containing five uncorrelated strategies "seeking to mitigate equity market drawdowns while providing a positive long-term return," said a division report that described all commitments.
- Up to $300 million to Graham Diversifying Alpha-NJ RMS Solution, managed by Graham Capital Management, a fund-of-one customized portfolio investing in five uncorrelated strategies that is also part of the risk-mitigation strategy.
- Up to $300 million to PIMCO Arculus Fund, managed by Pacific Investment Management Co., as a fund-of-one customized portfolio. It is part of the risk-mitigation strategy, containing six uncorrelated strategies.
The division also made a real assets commitment of up to $500 million to StepStone Real Assets SMA, a separate account managed by StepStone Group. It will initially focus on infrastructure co-investments, primarily in North America.
The division made three private equity commitments totaling up to $450 million:
- Up to $250 million to Tiger Iron Garden Fund, a fund of funds managed by Tiger Iron Capital that focuses on investing in established and emerging managers in venture capital.
- Up to $100 million to PSG VI, which makes North America investments in lower-middle-market software, data and technology service providers.
- Up to $100 million to Silver Lake Partners VII, a buyout fund that acquires "controlling interests in large and complex technology and technology-enabled businesses."
The division also made a real estate commitment of up to $150 million to KSL Capital Partners Tactical Opportunities Fund II, which focuses on real estate-related assets in the travel and leisure sectors, primarily in U.S. hotels and resorts.
The division also restructured a private credit commitment of up to $414 million to Blackstone Tactical Opportunities Fund-A. Division officials said this is a restructuring of an existing partnership with Blackstone to fund a private credit component with proceeds from New Jersey's existing private equity, real estate and real assets investments in the Blackstone fund.
Also, the division announced a follow-on commitment of $150 million to Cerberus Institutional Real Estate Partners VI, managed by Cerberus Capital Management that focuses on "opportunistic, undervalued and/or distressed real estate." The division made a $200 million commitment in October 2023.
Separately, the division reported that the New Jersey Pension Fund's net return was 4.4% for the six months ended Dec. 31, the first half of the current fiscal year. The benchmark was 4.9%.