New Jersey allocates up to $225 million to private equity

The New Jersey Division of Investment, which makes investments for the New Jersey Pension Fund, Trenton, committed up to $225 million to private equity funds for the pension fund.

The division made the disclosure at a meeting Wednesday of the State Investment Council, which formulates policies for the division of investment.

The division allocated up to $125 million to Stellex Capital Partners II, managed by Stellex Capital Management. The fund specializes in turnarounds “in which it targets distressed and mismanaged middle-market businesses in the manufacturing and industrial sectors,” a division report said.

The division also made a private equity commitment of up to $100 million for Silver Lake Partners VI, managed by Silver Lake Partners, an existing relationship for the $71.3 billion New Jersey Pension Fund.

“The firm focuses on leading, franchise-quality companies with inherent competitive advantages,” the report said. “Investing in high-growth businesses, Silver Lake seeks mispriced companies with strong top-line growth rates.”

Also at the meeting, which was conducted by telephone, members of the State Investment Council voted to raise the pension fund’s allocation to real estate investments to 10% from 9% and raise the combined allocation to private equity and private equity buyouts to 15% to 12%.