New Jersey makes huge bet on TPG

The New Jersey Division of Investment has committed $300m to TPG Capital, a longstanding relationship for the pension, and $200m to three other managers.

The New Jersey Division of Investment has approved a $100 million commitment to TPG’s debut distressed fund and has committed $200 million into private equity real estate separate accounts with TPG, according to documents from the $74 billion pension.

TPG Opportunities II, which focuses on investments in non-performing loans, distressed-for-control and special situations, has a $1.5 billion target.

New Jersey has a long history of investing with TPG. The pension previously invested in TPG Financial Partners, which originally had a $6 billion target before being reduced to $2.5 billion and TPG-TAC, a fund that invests in bank loans. New Jersey’s relationship with TPG Opportunities Partners began in May with a $200 million investment to TPG’s direct lending vehicle TPG Specialty Lending.

New Jersey also recently approved $250 million in commitments to three other private equity managers. The pension approved a $100 million commitment to Sterling Partners’ fourth fund, roughly $110 million to AnaCap Financial Partners’ second credit fund and $40 million to Lehman Brothers spin-out Tenaya Capital’s debut venture capital fund.

Sterling Capital Partners IV is targeting $1.2 billion for investments primarily in the business services, healthcare and education sectors. The fund will invest between $24 million and $200 million per investment, and will target five to six platform investments per year.

AnaCap Financial Partners, a financial services-focused private equity group, is targeting £250 million (€286 million; $395 million) for AnaCap Credit Opportunities II, which has a £350 hard-cap. The fund invests in portfolios of distressed debt assets in Europe, including consumer credit card debt. The firm has raised at least $101 million, according to filings with the US Securities and Exchange Commission from September.  The filing names San Francisco-based Growth Capital Services as placement agent.

Tenaya Capital, headed by Tom Banahan, is targeting $300 million for its debut venture fund, with a hard-cap of $400 million, according to pension documents. Lazard is working as placement agent for the fundraising. Tenaya is charging a 2 percent management fee during the five-year investment period based on capital commitments. The firm will use 100 percent of transaction fees to offset the management fee.