T
he New Jersey Division of Investment plans to create a $400m non-core real estate separate account with StepStone, as outlined in a recent board meeting document. The proposed portfolio will allocate 60% towards middle-market primary funds raising between $500m and $2bn, and 40% towards tactical investments such as secondaries, recapitalizations, and co-investments.
The fund aims to achieve a 13% net return with a focus on US-based investments. Notably, the pension fund will maintain control over portfolio construction and individual investment approvals. StepStone declined to comment on this matter.
Separately, the New Jersey Division of Investment has committed $250m to Bain Capital Real Estate Fund III, which seeks to raise $3.75bn with a hard cap of $5bn.
