Real estate made up a significant portion of the New York State Common Retirement Fund (NYSCRF)’s alternative investment activity in December 2024, allocating half of its $2.1 billion in commitments to the sector. Additionally, the pension fund deployed capital across private equity and credit strategies. 

In its $1 billion commitment, NYSCRF focused heavily on data centers, with a notable portion allocated to IPI Partners. The firm, which is a new manager for NYSCRF, received a $400 million investment in its IPI Partners III fund, as well as an additional $100 million for a co-investment vehicle linked to the fund. IPI Partners is targeting a $4 billion raise for this strategy, aiming to expand its footprint in the data center sector. 

IPI Partners holds a strategic edge by owning developable land in regions with both reliable power sources and strong connectivity – critical resources that give it an advantage over competitors who lack these key elements. 

In addition, NYSCRF committed to two separate account investments. In BlackRock’s Separate Account, NYSCRF made invested $283 million in Simone Little Italy, a 395-unit, 36-story high-rise apartment building in downtown San Diego, CA. A $247.5 million investment went to MetLife Investment Management Separate Account. The funds were for the purchase of The Royce, a 520-unit housing property in Irvine, CA. 

The $275 billion NYSCRF had an active and successful year in 2024 within private markets. For the year ending March 31, 2024, the fund achieved impressive overall investment returns, exceeding 11%. NYSCRF has approximately $100 billion dedicated to alternative investments, reflecting its strong commitment to private market strategies. Over the last year, the fund allocated more than $20 billion into private market strategies.