NY Common commits to Blackstone separate account(2)

The $161bn pension has committed $500m to Blackstone’s Tactical Opportunities fund, marking New York Common’s first investment in its opportunistic asset class.

The New York State Common Retirement Fund has committed $500 million to The Blackstone Group’s separate accounts business called Tactical Opportunities.

Blackstone had raised more than $4 billion for its tactical opportunities fund as of mid-October, including $703 million the firm raised during the third quarter. Launched in 2011, the fund consists primarily of separately managed accounts with limited partners including the New Jersey Division of Investment, the California Public Employees’ Retirement System and the Oregon Investment Council. The commitment marks New York Common’s first investment in its opportunistic asset class, according to a statement.

“The opportunistic portfolio will allow the Fund to be flexible in finding and capitalising on solid risk-adjusted investment opportunities,” New York state comptroller Thomas DiNapoli said in the statement.

Tactical Opportunities uses capital on a quick and opportunistic basis and there is no cap on how much the firm can raise for the strategy. The fund has a three-year investment period, Blackstone chief executive officer Steve Schwarzman said during an earnings call in April.

New York Common has about $160.7 billion of assets under management and a target allocation of 4 percent for opportunistic investments. Earlier this year, the pension announced plans to increase its investment staff, particularly in the alternatives area, and rely less on outside consultants for due diligence and underwriting.