The New York State Common Retirement Fund allocated more than $1 billion to alternative investments during July, half of which has been earmarked for real assets, according to its monthly investment report.
The pension fund committed nearly $500 million to three funds within its real asset portfolio. It allocated €200 million ($198.1 million) to the DIF Infrastructure Fund VII, which is managed by DIF Capital Partners. The fund will invest in core, long-term contracted infrastructure investments in public-private partnerships, utilities and renewable energy sectors.
The NYCRF has also set aside €200 million to DIF Capital Partners’ DIF Core Plus Infrastructure Fund III, which will invest in mid-term contracted economic infrastructure, targeting small and mid-market infrastructure investments in telecom, energy and transportation sectors.
The remaining $100 million has been allocated to the ISQ Co-Investment Fund III, which is managed by I Squared Capital. The fund aims to invest in a portfolio of renewable power infrastructure assets.
Within its private equity portfolio, the pension fund committed €200 million
to EQT Partners’ EQT X SCSp fund, which will seek investments in the health care, technology, industrial technology and services sectors, primarily in Western Europe. It also allocated another $100 million to the Siris Partners V fund from Siris Partners. The fund will target investments in U.S.-based technology companies among a variety of subsectors.
Under its real estate portfolio, the pension fund invests with real estate opportunity funds, affordable housing, mortgages and joint ventures with a property-specific mandate. The NYCRF earmarked $200 million to Noble Investment Group’s Noble Hospitality Fund V, which is a closed-end real estate fund that will invest in upscale select-service and extended-stay hotels in U.S. markets with strong population and GDP growth.
The pension fund also set aside $15 million to a fund managed by 1315 Capital under its emerging manager program, which the NYCRF established to invest in newer, smaller and diverse investment management firms. The 1315 Capital Early Growth fund will provide expansion and growth capital to commercial-stage health care companies in North America.