NY State Retirement Fund Invests $1.8B in Private Markets
The New York State Common Retirement Fund added $1.8 billion across multiple real estate, credit and private equity funds, according to recent disclosures from the State Comptroller’s office.
The $268 billion retirement fund allocated $700 million to real estate funds. Officials approved a $300 million commitment to the Principal Data Center Growth & Income Fund, a closed-end fund managed by Principal Real Estate Investors.
Carlyle Investment Management’s Carlyle Realty Partners X received $400 million. The fund targets opportunistic returns within the Carlyle Realty Partners Fund series that to date has invested in 300 lower- to middle-market properties, primarily in the U.S.
A $10 million investment was allocated to the Empire GCM RE Anchor Fund under the emerging manager program. Managed GCM Grosvenor, the platform will invest in three European residential platforms alongside Matter Real Estate Fund II.
Within private credit, a $300 million allocation was made to the Warburg Pincus Capital Solutions Founders Fund, which focuses on “highly structured” transactions that combine downside protection with equity-like upside. The firm’s first initiative into structured investments closed to new capital in September with more than $4 billion in capital.
The second credit investment went into Domain Excelsior Fund, an existing fund-of-one managed by Domain Capital Advisors. The firm invests in entertainment assets. The fund received a $400 million allocation.
Within the opportunistic absolute return portfolio, the fund put $350 million to work across two key private equity-oriented strategies managed by Insight Venture Management.
The Insight Partners Opportunities Fund II saw a $150 million commitment to target minority equity investments in growth stage software companies within North America and Western Europe. The second allocation of $200 million was made to Empire Co-Invest III, which invests alongside Insight Partners Opportunities Fund II. Both investments were closed in early August.
Just over one-third of the retirement fund’s investment portfolio is allocated to private markets. As of June 30, the fund’s holdings included 15% private equity, 13% real estate and real assets, and approximately 8% credit, absolute return strategies, and opportunistic alternatives.