The $279.7 billion New York Common Retirement Fund committed more than $2.6 billion to alternative investments in December 2021, nearly half of which was allocated to four real estate funds.
The state pension fund earmarked $400 million to the Cortland Growth and Income Fund from Cortland Partners LLC. The open-end fund focuses on acquiring and operating market-rate, well-located multifamily assets with durable, stable, recurring income and strong capital expansion in U.S. growth markets.
Another $300 million was committed to the Blackstone Real Estate Partners Asia III LP fund from The Blackstone Group. The fund aims to build a diversified portfolio of real estate and real-estate-related assets in the Asia Pacific region. The JPM Star Lake Fund IV, LLC from JP Morgan will also get $300 million from the pension fund. Star Lake IV, which is sponsored by J.P. Morgan Real Estate, is a diversified closed-end fund-of-one focused on value-add opportunities in the U.S.
And the pension will also invest $300 million in Ventas, Inc.’s Ventas Life Science and Healthcare Real Estate Fund, an open-end fund focusing on core health care real estate investments, such as life science and medical office buildings.
The biggest commitment to a single fund during the month—$750 million—went to Brookfield Asset Management Inc.’s Brookfield Global Transition Fund, L.P. under the pension’s real assets portfolio. The fund seeks to invest in high-quality assets and businesses where it can exercise significant control or influence to generate a measurable positive environmental impact and strong financial returns.
Under its opportunistic absolute return strategies portfolio, the pension fund earmarked $340 million for the Capital Constellation L.P. from Capital Constellation LLC. The fund makes structured equity investments in growth-oriented alternative asset managers.
Another $250 million has been committed to private equity investments, including a $150 million commitment to Apollo Global Management’s Apollo Impact Mission Fund, which will target late-stage investments among “impact-aligned investment themes,” such as economic opportunity, education, health, and safety and wellness. The other $100 million will go to the Insight Partners XII Buyout Annex Fund from Insight Partners. The fund will invest in buyout transactions, targeting technology companies in North America, Europe and Israel.
In contrast, the pension fund’s investment activity was far more subdued during January, when the fund only added $188.7 million to the the Lisanti Capital Growth account under its global equity portfolio.
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Tags: absolute return, Alternative Investments, Alts, Blackstone, Brookfield Asset Management, New York Common Retirement Fund, Private Equity, Real Assets, Real Estate