- Why is this important: NJ commits $125 mln to TPG’s social-impact Rise Fund II; $150 mln to consumer-focused TSG fund
- AUM: $79.4 billion
- Target allocation to buyouts and venture: 8.25 pct; actual allocation 9.88 pct
- Contact: Jennifer Sciortino at firstname.lastname@example.org or +1 609-633-6565
New Jersey State Investment Council approved $275 million in private equity commitments at its November meeting, backing TPG’s second social-impact fund and a middle-market consumer fund.
The $79.4 billion state pension system committed up to $125 million to Rise Fund II, which is part of the TPG Growth platform.
Rise Fund, which has a $3.5 billion hard cap, will pursue control and non-control stakes in small- and middle-market buyout and growth companies. The fund focuses on companies that achieve measurable social impact and/or environmental benefits in four core sectors: healthcare, education, financial services and energy.
Rise Fund also explores opportunities in food and agriculture, technology and growth infrastructure, according to the investment council.
New Jersey committed $75 million to TPG’s previous Rise Fund, which closed on $2 billion in October 2017.
The council also approved a commitment of up to $150 million to TSG Partners’ TSG 8 fund, which is targeting $3.5 billion with a $4 billion cap.
TSG’s eighth fund will focus on growth-capital investments in middle-market branded consumer products companies, according to pension documents.
Fund 8 targets opportunities in food and beverage, personal care, household products, retail, franchising and consumer services.
New Jersey has a 9.88 percent allocation to buyouts and venture capital, with an 8.25 percent target, and a 1.2 percent allocation to debt-related PE, with a 2 percent target.
TorreyCove Capital Partners is the system’s PE consultant.
Action Item: New Jersey’s pension investments on the council’s website: https://bit.ly/2RyQi7t