New Jersey’s pension system plans to boost its investment with Och-Ziff Capital Management Group LLC by as much as $900 million to more than $2 billion.
The commitments will be made to existing separate accounts focused on real assets, real estate and global diversified credit, and two new commingled funds, New Jersey Division of Investment director Chris McDonough proposed to a state investment council meeting in Trenton on Wednesday.
New Jersey has been striking deals with large alternative money managers including Blackstone Group LP to increase allocations across funds in exchange for lower fees. Och-Ziff, which oversees about $47 billion, has grown rapidly in the past year by gathering assets for its credit and real estate funds.
New Jersey will receive a fee discount for making the commitment, McDonough said. The new fund commitments are $100 million to OZ Energy Partners and $100 million to Och-Ziff Real Estate Credit Fund.