New Jersey Division of Investment intends to establish a $400m (€383.9m) non-core real estate separate account with StepStone, according to a board meeting document.
The potential portfolio allocation includes $75m for StepStone’s flagship secondaries fund, StepStone Real Estate Partners V, which according to industry sources held its first close in May 2024 with $900m in capital commitments.
The separate account will target a 60% allocation to middle-market primary funds with capital raises of $500m to $2bn, and a 40% allocation to tactical investments, including secondaries, recapitalisations and co-investments.
New Jersey Division pension fund will retain control over portfolio construction and individual investment approvals and expects the strategy to target a 13% net return, with a primary focus on the US.
StepStone declined a request for comment.
Additionally, the pension fund disclosed that it has made a $250m commitment to Bain Capital Real Estate Fund III, a Bain Capital fund aiming to raise $3.75bn, with a $5bn hard cap.
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