NY State Pension Commits Over $2bn for Private Equity, Real Estate

Apr 19, 2022 | News

new york

The $280bn New York Common Retirement Fund committed a little more than $2bn in investments in February toward the pension’s credit, private equity, real estate, absolute return, and real asset portfolios.

During the month, the pension fund committed $1.2bn toward its credit portfolio, including $800m to the Ares SSG Capital Partners VI, and Ares SSG Excelsior Co-Investment, funds, and $400m to the Ellington Empire Fund managed by Ellington Management Group.

The Ares SSG Capital Partners VI and Ares SSG Excelsior Co-Investment funds, which are managed by Ares SSG Capital Management, are closed-end funds that invest mainly in special situations and credit investments in the Asia-Pacific region. And through the Ellington Empire Fund LLC, Ellington Management Group will invest in various residential mortgage, commercial mortgage, and consumer loan assets, including loans, pools, and securities.

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Under the fund’s opportunistic absolute return strategies portfolio, it invested $300 million in the Neuberger Berman Opportunistic Capital Solution Fund, managed by Neuberger Berman Group. The fund offers investors an alternative way to access large allocations of quality growth companies and participate in general partner economics by co‐sponsoring six to eight structurally differentiated special purpose acquisition companies.

The pension fund also committed $200 million for its private equity portfolio to the Clearlake Capital VII, L.P. fund managed by Clearlake Capital Group. The fund will target investments in the technology, industrials, and consumer sectors, mainly in the US. It also committed $10 million to J-Star No. 5, L.P., which will focus on small-mid Japanese buyout investments among various sectors, and $5 million to the NFX Capital Opportunity Fund I., which will invest in the technology and life sciences sectors in Israel and the US.

Within its real estate portfolio, the pension fund earmarked $200 million for the Artemis Real Estate Healthcare Fund II, managed by Artemis Real Estate Partners. The closed-end diversified fund will focus on value-add healthcare-related real estate investments in the US.

The pension fund also committed $150 million within its real assets portfolio to the Hull Street Energy Partners II, L.P. fund, managed by Hull Street Energy. The closed-end fund invests in assets and companies in the middle-market power sector that support the regional transition to a decarbonized economy.

Source: CIO

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