New Jersey Division of Investment outlines 2021 private credit pacing plan

The US public pension plans to gradually increase its private credit exposure.

Institution: New Jersey Division of Investment
Headquarters: Trenton, United States
AUM: $84.64 billion
Allocation to private debt: 6.87%

New Jersey Division of Investment revealed its private credit commitment pacing plan at its March 2021 state investment council meeting. The pacing plan was put forth by its newly appointed private credit consultant, TorreyCove Capital Partners. The pension recently increased its private credit target allocation, as reported by Private Debt Investor.

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Highlights from NJDOI’s March 2021 retirement board meeting:

  • NJDOI will commit around $1.3 billion to private credit during 2021 with a range of $1.1 billion to $1.4 billion.
  • The pension will gradually increase commitments between 2021 and 2028 to meet its increased private credit allocation of 8 percent and to counter potential redemptions from the portfolio’s more liquid vehicles.
  • The pension also confirmed a $180 million commitment to Eagle Point Defensive Income Fund and Eagle Point NJDOI Separate account. It allocated $120 million to the separate account while $60 million will be invested in the fund. The investments will focus primarily on investment-grade portfolio debt securities.
  • NJDOI selected TorreyCove Capital Partners as its private credit investment consultant.

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NJDI’s director and chief investment officer is Corey Amon. According to his LinkedIn profile, Amon joined the pension as the deputy director and deputy chief investment officer in October 2014. Prior to joining, he worked as assistant treasurer at Ryder System, Inc.

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