NJ Pension Manager Allocates Nearly $2B to PE, Credit, Real Estate
The $79 billion New Jersey Division of Investment (NJDI) designated roughly $2 billion to its private credit, private equity, and real estate programs, as per records submitted at its January board meeting.
NJDI’s private credit program, which manages more than $5 billion in assets, added $900 million in new commitments, Blue Torch Capital, a new manager for NJDI, received a $400 million commitment for a separately managed account vehicle and an additional $200 million allocation to a co-investment vehicle. The strategy aims for net IRR returns between 12% and 16%.
A $150 million credit allocation was made to a separately managed account managed by existing NJDI manager, The TCW Group, and another $150 million to a co-investment sleeve. The strategy primarily focuses on senior secured direct lending, targeting both sponsored and non-sponsored core middle-market companies in the U.S. It aims for unlevered returns between 9% and 13%.
NJDI earmarked $650 million to its private equity portfolio across four managers. Among these, a $200 million commitment was approved for Bain Capital Fund XIV, an upper middle-market buyout fund expected to close with $10 billion in committed capital.
The pension fund committed $200 million to EQT’s BPEA Private Equity Fund IX, which focuses on a high-conviction Pan-Asian buyout strategy. The fund is targeting a $12.5 billion capital raise.
NJDI invested $150 million in Hg Saturn 4, a high-conviction, sector-focused European buyout fund. Saturn 4, as part of Hg’s upper-middle market strategy, intends to make 8-10 platform investments worth more than $1.25 billion in equity. The fund intends to invest $12 billion in total assets, with a projected IRR of 20% to 25%.
A $100 million commitment was made to the Strategic Value Special Situations Feeder Fund VI, managed by Strategic Value Partners. The fund focuses on distressed debt and special situations, investing in core industries with predictable cash flows primarily in North America and Europe. This latest offering aims to raise up to $6.5 billion, with a target net IRR of 15%.
NJDI’s underweight real estate program invested $400 million to StepStone Group through a separately managed account (SMA). This non-core real estate fund will offer access to middle-market primary funds ranging from $500 million to $2 billion, as well as tactical investments such as secondary markets, fund recapitalizations, and asset co-investments. The SMA expects returns of roughly 13%.