New York State Pension Invests Over $3 Billion in Alts in June

The $280 billion New York Common Retirement Fund has allocated more than $4 billion in investments in June, over $3 billion of which is earmarked for alternative investments, according to the fund’s monthly transaction report. The allotment includes $2.2 billion in real estate investments, and over $1 billion in private equity funds.

Within its real estate portfolio, the pension fund committed $500 million each to the JP Morgan Strategic Property Fund, the Blackstone Real Estate Partners X fund, the Principal U.S. Property Separate Account fund and the PRISA fund from Prudential’s PGIM real estate.

The JP Morgan fund, which is managed by JP Morgan Investment Management, is an open-ended commingled fund that invests mainly in core real estate assets in the U.S. The Blackstone fund is the latest in the private equity firm’s series of global flagship real estate funds, which intends to build a diversified portfolio of real estate and assets related to it worldwide.

The Principal fund, managed by Principal Financial Group’s Principal Real Estate Investors, is an open-ended diversified fund that focuses on core stabilized assets within the main real estate sectors in the U.S. And the PRISA fund, which is sponsored by the global investment management division of Prudential, is a perpetual life, open-ended, commingled fund that invests in core real estate assets in the U.S.

The NYCRF also earmarked $200 million within its real estate portfolio to the Fairfield U.S. Multifamily Core Plus Fund II, which is a closed-end, core-plus-style real estate fund that aims to invest in multifamily assets located in suburban U.S. markets.

The pension fund also allocated a little over $1 billion to private equity investments, led by a $400 million commitment to the Hamilton Lane NY Israel Fund II, which will target Israel-focused funds and co-investments in Israel’s technology and health care/life sciences sectors.

The NYCRF committed €300 million ($308 million) and €225 million to the Knickerbocker Co-Investment Partners fund from CVC Capital Partners and Bridgepoint Capital’s Bridgepoint Europe VII fund respectively. The Knickerbocker fund is looking to invest capital in select, high-conviction opportunities alongside CVC’s European, Americas and Asian funds. And the Bridgepoint fund will invest in the business services, media and sports rights, consumer, financial services, health care and advanced industrials sectors, mainly in Western Europe.

And for the remaining private equity investments for the month, €50 million and $50 million was set aside for the Marble Arch Albany Co-Investment fund from Bridgepoint Capital and Hamilton Lane’s New York Credit SBIC Fund II respectively. The Bridgepoint fund will invest in “high conviction opportunities” alongside its Bridgepoint Europe VII fund, and the Hamilton Lane fund seeks debt investments in New York state’s lower middle-markets.

The pension fund also committed $500 million within its public equity portfolio to the Pictet Global Environmental Opportunities fund, which aims to invest in global equity opportunities, and $350 million within its credit portfolio to two funds managed by Sixth Street Partners.

Of the $350 million, $200 million is going to the Sixth Street Opportunities Partners V fund, which focuses on thematic, control-oriented, actively managed investments with downside protection in growth, stressed and distressed situations. The fund’s investments include senior secured term loans, preferred equity, convertible notes and warrants. And the remaining $150 million is earmarked for the Sixth Street Growth Partners II fund, which will focus on “bespoke capital solutions” to performing, late-stage growth companies. Investments will include senior secured term loans, preferred equity and convertible notes.