NYSCRF Bulks Up on Real Estate Investments in December

The New York State Common Retirement Fund committed more than $2 billion to new investments in December 2024, more than half of which was allocated to real estate investments, according to the pension fund’s monthly transaction report.

Within its real estate portfolio, the $275 billion pension giant earmarked $400 million to the IPI Partners III fund managed by IPI Partners LLC, a new relationship for the NYSCRF. The fund will focus on data center investments worldwide. The NYSCRF committed another $100 million within its real estate portfolio to the IPI Partners III Co-Investment fund, which will invest alongside IPI Partners III.

The pension fund also acquired Simone Little Italy, a 395-unit, 36-story luxury high-rise apartment building in San Diego for $283 million. Another $247.5 million was spent on the acquisition of the Royce, a 520-unit, multi-family property in Irvine, California.

The NYSCRF also made commitments worth $500 million within its opportunistic absolute return strategies portfolio. The fund is investing $300 million in the B Capital Global Growth IV fund from B Capital Group Management. The fund invests in early-stage to late-stage growth tech companies. Another $200 million will go to the B Capital Co-Invest Fund, a sidecar co-investment vehicle.

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Within its credit portfolio, the pension fund is allocating $100 million to the Pearl Diver Nautilus Series 2024 fund managed by Pearl Diver Capital. The fund will mainly invest in debt and equity tranches of collateralized loan obligations managed by third-party investment firms. It may also invest in CLO warehouses.

The fund committed $50 million to the Emerging America Credit Opportunities Fund from Capital Partners. The fund provides debt and flexible credit solutions to sponsored and non-sponsored lower-middle-market companies and will comply with certain requirements of the Small Business Administration for qualified small business investment company funds. Another $25 million was set aside for the Emerging America Credit Opportunities SMA I Fund, a separately managed co-investment sidecar that invests alongside the Emerging America Credit Opportunities Fund.

Within its private equity portfolio, the pension fund invested $200 million in the Summit Partners Co-Invest fund from Summit Partners. The fund will invest alongside Summit Partners Growth Equity Fund XII, which will primarily be utilized in the U.S.

The pension fund also committed approximately $15.2 million to the Warburg Pincus Jovian FS fund managed by Warburg Pincus. The fund will complete follow-on investments in portfolio companies transferred out of the Warburg Pincus Financial Sector portfolio.

Within the NYSCRF’s emerging managers program, which was established to invest in newer, smaller and diverse investment firms, the fund allocated $15 million to the AUA Private Equity Partners Fund III, which will make “control-oriented” investments in family-owned businesses in the consumer sector, with a focus on food manufacturing and distribution.