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New Jersey's Emerging Managers Symposium Bridges the Gap Between Budding Investment Partners and Nation's Major Public Pension Funds
Treasury’s Division of Investment Introduces the New Emerging Managers Platform
Over 500 attendees from around the world logged on for the New Jersey Division of Investment's (DOI) Private Market Emerging Managers Symposium on June 21, 2023. The virtual event presented an unparalleled opportunity for budding fund managers to connect with New Jersey's Emerging Managers Platform.
The New Jersey DOI oversees one of the nation's largest public pension funds, which currently holds approximately $95 billion.
"We have both an opportunity and an obligation to attract a broad range of diverse investment opportunities – especially investment managers from underserved communities,” Governor Phil Murphy stated at the symposium.
This event and the newly launched Emerging Managers Platform aim to develop the next generation of fund managers who may lack access to such high-profile opportunities.
"New Jersey is proud to be a leader in engaging fund managers who may be overlooked in traditional investment structures,” State Treasurer Elizabeth Maher Muoio remarked, adding that diversifying the private markets portfolio is one of their key strategies. The Emerging Managers Platform is expected to play a significant role in realizing this objective.
Key figures, including Governor Murphy, Treasurer Muoio, DOI Director and Chief Investment Officer Shoaib Khan, and State Investment Council Chair Deepak Raj, delivered speeches at the event.
Additionally, several industry experts presented on a range of topics, including advice for emerging managers, an overview of other public pension funds' emerging manager programs, and an analysis of the emerging manager landscape in the private equity, private credit, and real estate asset classes.
DOI Director and CIO Shoaib Khan emphasized the importance of looking towards the future, stating, "The investments we make today will need to deliver returns for beneficiaries many years into the future."
Khan also highlighted the value of engaging smaller, emerging managers, asserting that such additions to the investment portfolio can significantly enhance its performance.
State Investment Council Chair Deepak Raj pointed out the benefits of working with smaller, emerging managers, particularly those from minority-owned and women-owned investment firms. Their unique perspectives bring new ideas and processes to the composition of New Jersey’s pension portfolio, thereby adding tremendous value.
The symposium also provided an overview of New Jersey's Emerging Managers Platform, which was launched last year with the objective of increasing the state’s exposure to a more diverse range of fund managers and providing access for skilled investment professionals.
The program utilizes Separately Managed Accounts (SMAs) to identify, invest in, and manage emerging managers. This strategy aids in the integration of successful emerging fund managers into the broader DOI portfolio, enabling them to establish direct relationships with the division over time.
