New York Pension Earmarks More Than $1B, Continues to Shun Public Equities

The New York State Common Retirement Fund earmarked more than $1 billion to real estate and private equity investments in July, while again allocating no funds to public equities, according to its monthly transaction report. It was the ninth time in the past 11 months that the $284 billion pension giant did not make any commitments to the asset class.

More than $640 million was committed to investments within the pension fund’s real estate portfolio, $400 million of which was allocated to the RFM-NYSCRF Affordable Housing Fund. The fund is a domestic affordable-housing fund-of-one sponsored by Related Fund Management, which marks the pension fund’s first investment with the firm.

The NYSCRF also acquired Riverbank Apartments, a 418-unit, 44-story apartment building on Manhattan’s West Side, for $243.5 million, as well as a five-building medical office portfolio of properties located in five U.S. markets for $49 million.

The pension fund committed $430 million to four funds within its private equity portfolio, $250 million of which is headed to the KKR Empire PE Co-Investments fund, managed by Kohlberg Kravis Roberts & Co. Inc. The fund will invest additional capital alongside various KKR funds, mainly in North America.

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Another $110 million was allocated to the Frazier Life Sciences XII fund run by Frazier Life Sciences Management, which targets investments in life sciences businesses in North America. Another $40 million has been earmarked for the PVP Fund V fund managed by Primary Venture Management. The fund focuses on investing in software-as-a-service businesses, predominantly in New York City. Additionally, $30 million will go to the Primary Select Fund IV, which will make “later-stage investments in opportunities from the flagship funds.”

Under its emerging manager program, which invests in newer, smaller and diverse investment management firms, the NYSCRF committed almost $16 million to the Wavecrest Growth Partners III fund managed by Boston-based Wavecrest Growth Partners, which will make growth investments in lower-middle-market business-to-business tech firms. Wavecrest closed its debut fund in 2019, according to published reports.