NJDOI approves allocation range and searches for new investments in private equity

The State Investment Council has approved a range to the asset class and hints at future investment plans for the portfolio.

Institution: New Jersey Division of Investment
Headquarters: Trenton, United States
Total AUM: $76.01bn
Allocation to Alternatives: 23.56%
Bitesize: $100-200m

New Jersey Division of Investments (NJDOI) approved a range of 9.0 to 15.0 percent for private equity investments at a regular board meeting on Wednesday. The target allocation to the asset class is 12.0 percent, which was increased from 10.25 percent in May.

The State Investment Council is in search of new investment opportunities in order to meet their target. A representative from investment consultant TorreyCove states that while the pension will “continue to back some top performing managers pursuing large deals, the emphasis is now more on the mid-cap space versus five years ago.” Additionally, the pension plans to add European exposure within the private equity portfolio.

The $76.01 billion public pension currently allocates 10.43 percent of its funds to private equity. Most recently, the board committed $100 million to Warburg Pincus China-Southeast Asia II.

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