New Jersey Division of Investment is considering making a $250m (€226.3m) commitment to a non-core real estate emerging manager programme with GCM Grosvenor, according to the pension fund’s meeting document.
According to New Jersey Division, Grosvenor is expected to issue a $2m co-investment to the account which would operate as a separate account relationship.
The pension fund expects the Grosvenor separate account to provide exposure to investment opportunities that are below the radar of many of its current managers that focus on large-scale assets or portfolio transactions.
The separate account targets a net internal rate of returns of 11% to 13% as it invests mostly in middle market-sized commercial and residential properties.
The strategy primarily targets properties in the US but some deals could be in Europe as the opportunity arises.
New Jersey has also a new commitment to its real assets portfolio by placing $75m into Stonepeak CPF Investment Partners, an infrastructure fund managed by Stonepeak.
The manager declined a request for comment.
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