NYSCRF Private Markets Strategies Reaches $100B – Real Estate, Real Assets Top $350M
The New York State Common Retirement Fund (NYSCRF), which manages $275 billion in assets, ramped up its focus on private markets in 2024. Recent commitments have boosted the fund’s alternatives exposure to approximately $100 billion, representing over a third of its total portfolio.
The pension fund deployed $5.5 billion to alternatives in 2024. A key highlight was the $2.7 billion in private equity co-investments made in November. While public equities account for 42% of its holdings, private markets now represent a substantial portion of the portfolio. The distribution is private equity (14.45%), real estate and real assets (13.32%), and credit and other alternative strategies (8%). The remaining 22.22% is allocated to traditional fixed income and cash investments.
Private Equity Shines
Within private equity, four tranches of $500 million each were approved for Neuberger Berman’s dedicated co-investment fund, NYSCRF NB Co-Investment Fund III. Most of the investments, as was the case with the fund’s other recent deals, will be focused on North American and European companies.
NYSCRF allocated $150 million to Francisco Partners VII, a co-investment fund managed by Francisco Partners, a long-standing partner in the fund’s private equity program. This investment focuses on opportunities in North America.
The pension fund made a $300 million commitment to Lindsay Goldberg VI, a fund managed by Lindsay Goldberg, which specializes in middle-market buyouts and growth capital investments
Lastly, in Europe, NYSCRF approved a $51 million direct co-investment in Marble Arch Albany V Co-Investment, alongside London-based Bridgepoint Group. This investment is paired with a $206 million commitment to Bridgepoint Development Capital V, which focuses on opportunities in Northern Europe.
Real Estate, Real Assets Investments Top $350M
LaSalle Investment Management deployed $43.6 million to acquire the Apex Commerce Center in Raleigh, a 233,818-square-foot industrial building. J.P. Morgan allocated more than $70 million into Exchange Circle, a 316,000-square-foot industrial complex located in Dallas. Lastly, $375,000 went to a separate account for the renovation of a residential property in Newburgh, NY.
Real asset strategies demonstrated robust performance, achieving returns of more than 8% for the year ending March 31, 2024. Building on this momentum, NYSCRF made a $250 million commitment to Oaktree Power Opportunities Fund VII, which aligns with Oaktree Capital Management’s established infrastructure-focused strategy. The fund targets control investments in private companies offering products and services crucial to owners of critical infrastructure.
Credit Remains Appealing
Francisco Partners secured additional capital for its credit-focused co-investment offering, reflecting the strong performance of the credit program, which achieved nearly 11% gains in fiscal year 2024. A $200 million commitment was made to FP Credit Partners III, a fund-of-one co-investment sidecar vehicle managed by Francisco Partners.