New Jersey Division of Investment, which makes investments for the $78.5 billion New Jersey Pension Fund, Trenton, made three commitments totaling up to $300 million.
The commitments — two for private equity and one for real estate — were announced Wednesday at a meeting of the State Investment Council, which formulates investment policies for the division.
The commitments are:
- Vista Foundation Fund IV for up to $100 million. The buyout fund focuses on investing in midcap enterprise software companies, according to a division report made public at the meeting. New Jersey has an existing relationship with Vista Equity Partners, the manager of the fund.
- Altaris Health Partners V for up to $100 million. Managed by Altaris Capital Partners, the private equity fund makes investments in health-care companies via buyouts, corporate carve-outs, breakups, corporate partnerships … and recapitalizations," the division report said.
- DivcoWest Fund VI-A for up to $100 million, managed by Divco West Real Estate Services. The real estate fund invests in "office, research and development and laboratory properties to serve technology and life sciences tenants," the report said.
Separately, New Jersey Pension Fund posted a 4.9% return, net of fees, for the first six months of the current fiscal year, according to the division report presented at the meeting. These results through Dec. 31 fell below the benchmark of 5.7%.
For the 12 months ended Dec. 31, the return of 16.4% matched the benchmark. For the three years ended Dec. 31, the annualized return of 9.5% was just below the benchmark of 9.7%.
For the five years ended Dec. 31, the annualized return of 7.2% was just below the benchmark of 7.3%. For the 10 years ended Dec. 31, the annualized return of 8.3% surpassed the benchmark of 8%.
All return figures are preliminary and unaudited. The return and asset figures include results from the Police and Firemen's Retirement System. A law signed in July shifted investment policy responsibility from the State Investment Council to an independent board of trustees for the Police and Firemen's Retirement System. The council retains oversight of the other pension systems within the New Jersey Pension Fund.
