NJ Division of Investment Expands Commitments Across HFs, PE, and RE 

The $79 billion New Jersey Division of Investment approved more than $1 billion in allocations last month, adding capital across its risk mitigating strategies, private equity portfolio, and real estate program. 

To address an underweight position relative to its 3% target allocation, officials authorized an additional $500 million investment with existing manager Capula Investment Management. The pension fund had initially committed $100 million over the summer. The latest allocation will support Capula’s share class D (Capula Tail Risk Fund), which posted a 4.1% annualized return as of September 30. 

The State Investment Council also approved $475 million in fresh private equity commitments, each tapping distinct segments of the market: 

• Primary Wave Fund 4 received a $125 million commitment. As one of the earliest and largest managers in the music royalties sector, the firm employs a 112-person team and is targeting annualized returns of 15%. 

• PSG Europe III secured $150 million. PSG’s European platform focuses on emerging-growth B2B software companies, investing primarily in founder-led and family-owned businesses across the lower-middle market. 

• Coller International Partners IX-G was allocated $150 million, with an additional $50 million earmarked for a Coller-managed co-investment vehicle. The strategy centers on high-conviction secondary investments. 

Within its $4.5 billion real estate program—targeted at 8% of total assets—the Division approved a $100 million commitment to Hillwood U.S. Industrial Club VII. Part of the system’s non-core real estate portfolio, the fund will invest in institutional-quality U.S. industrial assets through both existing property acquisitions and new developments. Targeted net returns range from 14% to 16%.