Hamilton Lane has called on New Jersey Division of Investment to re-invest capital from a planned reduction of New Jersey’s exposure to real estate investment trusts (REIT) into private markets.

The investment consultant has recommended in a meeting document that New Jersey should reduce the REIT exposure within its real estate portfolio and redeploy the capital into private markets, a move which will ultimately help the $80bn (€66.7bn) pension fund reach and maintain its 8% target exposure to real estate exposure.

New Jersey’s currently manages $950m REIT portfolio internally, a portfolio which accounts for around 20% of the pension fund’s total real estate portfolio.

The pension fund has a current real estate commitment pacing range of $450m to $600m.

IPE Real Assets reported in July that New Jersey expects to continue investing in industrial, apartments and medical office but will also consider new subsectors like data centres and life science/research properties. 

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