The New Jersey Division of Investment is investing $800m (€709m) in a combination of real estate, real assets and credit with Och-Ziff Capital Management, according to board meeting documents.
Och-Ziff will manage a $700m discretionary separate account that will invest in real estate, real assets and global diversified credit. It will also co-invest $90m.
The real estate portion of the separate account is $100m.
The pension fund has also committed $100m to the Och-Ziff Real Estate Credit Fund, for which Och-Ziff is seeking to raise $800m from investors, inluding an $80m co-investment.
According to New Jersey, the fund will invest in North America, with a primary focus on the US, and target low, double-digit net returns.
It can invest in a range of income-producing properties, including apartments, office and retail assets. Some niche property types will be considered.
Other types of deals could include transitional assets, ground leases, corporate real estate and investing capital in real estate management companies.
A variety of investment structures will be considered, including first-lien loans, mezzanine loans, subordinated debt, B-notes, preferred equity and sale-and-leasebacks.
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