NY State Pension Targets PE, Real Estate, Real Assets
The New York State Common Retirement Fund announced $1.6 billion in new commitments to private equity, real estate and real assets, according to recently released July meeting documents.
The pension fund invested $700 million in private equity portfolios managed by Kohlberg & Company. Kohlberg NY Investors X-B received a $300 million commitment, with a focus on pharmaceutical/medical products and services, infrastructure services, business services, financial and information services, healthcare services, and food and consumer industries.
The Kohlberg Empire State Co-Investment Fund, which will invest alongside the main Kohlberg NY Investors fund, received a $400 million allocation in two tranches.
Valspring Capital Fund I received $15.7 million from the emerging manager portfolio (via M2 NY Pioneer Fund III / Muller and Monroe). The Valspring fund will make growth equity investments in U.S. tech-enabled healthcare and healthcare services firms.
The real estate program received $650 million, including a $200 million investment to Oaktree Capital Management’s Oaktree Real Estate Opportunities Fund IX. The fund focuses on commercial and residential properties through distressed debt acquisitions, rescue refinancing, discounted securities purchases, and equity recapitalizations.
BentallGreenOak has obtained a $300 million mandate for its closed-end pan-Asian fund, BentallGreenOak Asia IV. The fund is concentrated in Japan, with an emphasis on the office, logistics, residential, and hospitality industries.
KKR received a $150 million mandate for its KKR Real Estate Partners Americas IV (REPA) Co-Investment. The capital will be held in a side care that co-invests alongside the fund. Within real assets, Hull Street Energy Partners III, a continuation strategy that invests in power production assets, received a $250 million allocation.
As of June 30, the $268 billion pension fund had 42.32% of its assets invested in publicly traded equities. The remaining assets are allocated to cash, bonds, and mortgages (22.07%), private equity (14.71%), real estate and real assets (13.14%), and credit, absolute return strategies, and opportunistic alternatives (7.76%).