TRENTON, NJ-The state's Division of Investment has committed $900 million in assets from state pension funds to alternative investments, according to a report in Pension & Investments.
The commitments include $500 million to Blackstone Real Estate Partners Asia.
The state Investment Council, which formulates policy, was informed of the commitments by Timothy Walsh, director of the division at a meeting last week before contracts had been signed.
The division manages investments for the seven state pension funds that make up the New Jersey Pension Fund, which has total assets of $72.5 billion.
The Blackstone investment will be toward the company's first real estate vehicle focused exclusively on the Asia-Pacific region, Walsh told the council. The fund will focus on property investments in China, India, Australia and Japan. The division has committed $518.6 million to three other Blackstone real estate funds in the past.
Another $200 million investment of pension funds will be made with the ValueAct Co-Invest International Fund, an activist hedge fund that seeks to take large stakes in public companies “alongside other investment vehicles sponsored by” hedge fund manager ValueAct Capital, according to the pension magazine. Walsh told the council that the idea is to leverage investment to acquire a board seat and work effectively to unlock value.
A previous commitment of $150 million in state pension funds has been made to a separate ValueAct fund.
Additionally, $200 million will be funneled into the KPS Special Situations Fund IV, a private equity distressed-buyout fund. The affiliated KPS Capital Partners specializes in bankruptcies, restructurings and employee buyouts, mainly of manufacturing companies in North American and Europe.
A previous commitment of $25 million was made to another KPS fund.
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