NJ Pension Commits $850M to Private Equity, Real Estate
The New Jersey Division of Investment has committed $850 million across five private equity and real estate funds as the $86 billion pension system works toward its strategic allocation targets.
NJDI approved $550 million in private equity commitments, led by a $250 million allocation to Tiger Iron Garden Fund, a customized fund-of-one managed by Tiger Iron Capital.
The strategy will target technology-focused and generalist venture capital funds across investment stages. NJDI and Tiger Iron expect to build relationships with 10 to 12 managers through approximately 18 fund investments, with commitments ranging from $5 million to $20 million.
The pension also committed $100 million to Institutional Venture Partners XIX and $200 million to AE Industrial Partners Fund IV. The AE Industrial vehicle expects to make 12 to 15 platform investments across national security, aerospace and industrial services.
NJDI approved two $150 million real estate allocations. Cerberus Institutional Real Estate Partners VII will pursue debt investments across property types, regions and the capital structure, emphasizing distressed and liquidity-driven opportunities. The fund targets net returns of 13% to 16%.
Focus Senior Housing Core Strategies will recapitalize a 16-property senior housing portfolio containing 2,863 units across U.S. markets.
Before the July meeting, NJDI held $7.8 billion in private equity and $5 billion in real estate. Private equity represented about 9% of assets, below its 13% target, while real estate stood just under 6%, compared with an 8% target.
The pension returned more than 17% for the year through May 31, exceeding its assumed return but trailing its 18% benchmark.
NJDI selected Aksia as its real estate investment consultant earlier this year. Aksia also advises the pension on private equity.
Connect Money is spotlighting rising stars who have made a valuable contribution to the alternative investments industry. Based on your nomination, we will recognize professionals who have significantly influenced both the workplace and community. The deadline is September 9. Click here to submit your nominations and help us highlight the next generation of leaders.