NYSCRF Earmarks $2B to Alternatives Program
The New York State Common Retirement Fund (NYSCRF) added a little over $2 billion across its alternative investment strategies in May, with real assets accounting for most of the commitments, according to an investment report.
Real estate received a $458 million pledge, credit got $400 million and private equity received $225 million. About 3% of the NYSCRF investment portfolio are real assets, and the $268 billion pension fund had more than 8% in investment returns for the year ended March 31.
The $8 billion real asset program received an additional $954 million in commitments from two existing infrastructure managers, both of whom have significant holdings in global energy transition assets.
Copenhagen Infrastructure Partners secured two €300 million ($327 million) commitments. The initial allocation went to Copenhagen Infrastructure V, which is a continuation of the approach pursued by the Danish manager’s previous funds and will largely invest in large-scale, complex infrastructure assets related to energy transition. The second commitment went to Copenhagen Infrastructure’s co-investment offering.
Stonepeak Infrastructure Partners received a $300 million commitment for its Stonepeak Infrastructure Fund V, which executives described as a continuation of the strategy adopted in previous funds. The fund, which has recently obtained a $50 million commitment from the Teachers’ Retirement System of Louisiana, will largely invest in transportation and logistics, energy and energy transition, and communications infrastructure.
The real estate program increased its European assets through two Ares Management funds. Ares European Property Enhancement Fund IV (EPEP IV) received a €320 million ($349 million) allocation. The fund is a continuation of the EPEP fund series that targets core-plus and value-add real estate opportunities predominately in Western Europe. A co-investment of $109 million was made to support the EPEP fund strategy.
Much of the system’s real estate investment activity to far has been through the emerging manager program, with Artemis Real Estate Partners receiving an allocation in January.
As of the end of of the first quarter, the system’s assets were invested in publicly listed shares, accounting for 42.85%. The remaining fund assets are allocated to cash, bonds, and mortgages (22.26%), private equity (14.60%), real estate and real assets (12.77%), credit, absolute return strategies, and opportunistic alternatives (7.52%).