New Jersey Division of Investment, which manages investments for the $94.4 billion New Jersey Pension Fund, Trenton, announced Wednesday it had made three commitments to alternative investments of up to $652 million.
The latest commitments were presented during a virtual meeting of the State Investment Council, which governs policies for the division of investment.
The commitments are:
- Up to €300 million ($352 million) for CVC Credit Partners European direct lending strategy managed by CVC Credit Partners Investment Management. The money will be allocated between CVC Credit Partners European Direct Lending Fund III and a co-investment vehicle investing alongside this fund, said a division of investment report presented to the State Investment Council. This commitment "continues the process of diversifying the existing direct lending portfolio into Europe," the report said.
- Up to $150 million for Hammes Partners IV. The manager "is solely focused on healthcare real estate," including medical office buildings, ambulatory care centers and ambulatory surgery centers, the division report said.
- Up to $150 million for TPG Real Estate Thematic Advantage Core-Plus JV or a related separate account, to be managed by TPG Real Estate Partners, an affiliated of TPG, the division report said. This commitment will "focus on U.S. investments and initially target life science and industrial assets," the report said.
TPG, Hammes and CVC are existing relationships for the division of investment.
The pension fund's asset allocation is divided among five broad categories. For the fiscal year ended June 30, the largest allocation was global growth (59.1%), which contains domestic equity, developed markets international equity, emerging markets equity and private equity. The income category (16.7%) contains high-yield fixed income, private credit and investment-grade credit.
The defensive category (15.4%) holds U.S. Treasuries, risk-mitigation strategies and cash equivalents, The real-return group (7.9%) contains real assets and real estate. Other accounts for 0.9%.