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NJ pension proposes $850m in PE commitments

The New Jersey Division of Investment has proposed commitments to four private equity funds following an increase in allocation limits for alternatives.

The director of the New Jersey Division of Investment, William Clark, has proposed over $850 million (€552 million) in private equity commitments across four funds to the State Investment Council, according to a public memorandum.
 
The Division of Investment has proposed a $400 million follow-on commitment to Credit Suisse separate account CSFB/NJDI Investment Fund for investment in North American buyout funds with targets of $1 billion or less, and a $100 million follow-on commitment to Credit Suisse separate account the CS/NJDI Emerging Opportunities Fund II for investment in small or “emerging” buyout and venture capital funds.
 
The New Jersey pension will also commit $200 million to Hamilton Lane separate account the NJHL European Buyout Fund III to invest in international funds targeting over $1 billion with significant exposure to European companies and commit €106.25 million ($163 million) to UK-based middle market firm AnaCap Financial Partners.
 
The commitment to AnaCap would be the pension’s first direct investment in a UK-based private equity fund. The proposed investment also includes a 5 percent ownership stake in the management company.
 
The New Jersey Division of Investment had $77.7 billion in assets under management as of 29 February with 8.2 billion or 10.5 percent invested in alternatives. The pension raised its ceiling for alternative investments from 13 percent to 18 percent of assets under management on 21 February. The target for private equity investments is 5 percent to 7 percent of assets under management.
 
The Division is the latest in a long string of pensions raising allocations to alternatives. Recent pensions increasing allocations include: the Maryland State Retirement Agency, the Virginia Retirement System and the California State Teachers’ Retirement System.