New Jersey slates $250m for emerging manager separate account with GCM Grosvenor

The $89 billion New Jersey Division of Investment has proposed an investment of up to $250 million in the noncore GCM Grosvenor Emerging Manager Separately Managed Account, according to a recent board meeting document.

The vehicle invests with emerging real estate managers across value-add and opportunistic strategies and higher-returning credit strategies that can generate near-equity returns.

The division’s current real estate portfolio has a concentration of large, mature managers that focus on large-scale assets or portfolio transactions. The investment aims to diversify the division’s real estate portfolio with middle-market assets. The separately managed account will provide exposure to investment opportunities that are below the radar of many of the division’s existing managers.

GCM Grosvenor evaluates ESG considerations at the firm level, fund manager level and investment level.

The division has a 5.87 percent allocation to real estate, agai