NJ Pension Approves $375M to Real Estate, Private Equity

The New Jersey Division of Investment, which manages $93 billion in pension assets, has added two new investments to its direct lending and private equity portfolio in the last month.

Cerberus Capital Management’s direct lending strategy was approved for $225 million by the pension fund. This mandate was divided into two parts: a $150 million commitment to a separately managed account and a $75 million commitment to a potential co-investment vehicle or sleeve managed by Cerberus Business Finance.

The strategy seeks returns in the range of 10% to 12% net IRR. The primary concentration is on first lien senior secured direct lending to sponsored, large, and upper middle market enterprises in North America.

In private equity, Altaris Health Partners VI received a $150 million investment, which follows a $100 million commitment to Altaris V in 2020.

Altaris’ objective is to gain control of companies in four life sciences/healthcare sub-sectors: pharmaceuticals, medical devices, life sciences & diagnostics, and healthcare services. Over the last five funds, the manager has achieved a net IRR of 20%.