ASSET CLASS: INVESTOR ROUND-UP

ALLOCATION CHANGES
The New Jersey Division of Investment has frozen its entire allocation to alternative asset classes in a bid to stem a deepening budget hole.

Italian fund of funds Advanced Capital is particularly interested in investment opportunities in the energy sector and infrastructure funds over the next 12 months.

Daido Life Insurance Company will continue investing in private equity despite market conditions. The Japanese insurance company is looking to make less than 10 investments in funds globally over the next 12 months.

Bridgestone Corporation will commit to funds of funds globally. Over the next 12 months, the Japanese corporation is expected to invest in between one and two funds globally.

National Council for Social Security Fund of China will up its private equity investments in 2010. The fund has predicted an increase of its assets under management from RMB563 billion to an expected RMB1 trillion. This directly increases its 10 percent allocation to private equity to a possible RMB100 billion.

PEOPLE MOVES
Fondinvest Capital, a Paris-based fund of funds manager, has hired Catherine Lewis La Torre as a partner. Lewis La Torre co-founded Proventure, a fund of funds that specialises in European mid-market investments.

RECENT COMMITMENTS
State Universities Retirement System of Illinois committed $120 million to the US government's toxic assets programme. It committed $40 million each to funds raised by a partnership between Angelo Gordon and GE Capital Real Estate; RLJ Western Management and TCW Group.

The New York State Common Retirement Fund has earmarked $200 million to invest with managers that have qualified for the US toxic assets programme.

Kentucky Retirement System has committed up to $40 million to Keyhaven Capital's third European mid-market focused buyout fund, which has a target size of $400 million.

Mexican pension funds have been allowed to access private equity for the first time, via a Mexican Stock Exchange-listed vehicle to be managed by WAMEX Private Equity Management.

Louisiana Teachers' Retirement System has invested $40 million in two mezzanine funds: Merit Capital Partners V and Peninsula Capital Partners V.

New York State Teachers' Retirement System has committed $75 million to AG Capital Recovery Partners VII, a distressed fund managed by Angelo Gordon. The fund will invest in secured senior debt instruments of companies near or in bankruptcy.

Florida State Board of Administration invested more than $770 million in private equity in the second quarter. It committed $200 million to Lexington Partners VII and $100 million each to Energy Capital Partners II and TA Associates. It also invested $75 million each in Falcon Strategic Partners III, Riverside Capital Appreciation Fund V and Charlesbank Equity Fund VII.

The Oregon Investment Council approved a $500 million commitment to Fisher Lynch Capital Co-Investment Partnership II, which is targeting $1 billion from only two LPs, Oregon and the Washington State Investment Board.

The Massachusetts Pension Reserves Investment Management Board has committed $100 million to the Gores Capital Partners III, a buyout fund that is targeting $1.5 billion.

Bregal Investments, the investment arm of Holland's Brenninkmeijer family, has made a €1 billion commitment to Bregal Capital, its direct European private equity platform formerly known as Englefield Capital. It has also agreed to invest an undisclosed amount in a new fund, which will be raised under the Englefield brand.

CDC Group became the first development finance corporation to invest in Sierra Leone. It committed $5 million to the Sierra Investment Fund, a fund managed by Manocap, which invests in small-and medium-sized businesses and start-ups.

DIRECT INVESTMENT
Canada's Ontario Municipal Employees Retirement System and Public Sector Pension Investment Board have both invested directly alongside private equity firm TowerBrook Capital Partners to form a $700 million European commercial lending operation. OMERS recently decided to shift a large portion of its C$4 billion private equity plan away from indirect investments via funds towards direct investments.

Canadian Pension Plan Investment Board has teamed with TPG to buy pharmaceutical information provider IMS Health in a deal valued at $5.2 billion, which includes $4 billion and the assumption of $1.2 billion in debt.

SECONDARIES
Tennessee Consolidated Retirement System is considering making an investment in a secondaries fund. The $27 billion scheme began investing in private equity in August and has a target allocation of 3 percent.

AIG is selling just over $600 million in limited partner commitments from its balance sheet, although the partnership interests are only partially called. UBS is brokering the sale, which consists of underlying interests in various private equity funds, including funds managed by The Blackstone Group, Ares Management, Silver Lake and Clayton Dubilier & Rice.