N.J. Admin. Code § 17:4A-24.1

Current through Register Vol. 56, No. 21, November 4, 2024

Section 17:4A-24.1 - Permissible investments

(a) Subject to the limitations in this subchapter, the Board may invest and reinvest the moneys of the PFRSNJ-managed fund assets in private equity in any of the following ways:

1. Invest in private equity investments through separate accounts, funds-of-funds, commingled funds, direct investments, co-investments, and joint ventures provided that the requirements at N.J.A.C. 17:4A-1.4 have been met;

2. Purchase the common stock of an entity that primarily invests in private equity, and whose stock is traded on a securities exchange or over-the-counter market or offered and sold through a private placement; or

3. Purchase exchange-traded funds traded on a securities exchange or the over-the-counter market that primarily invests in private equity. For the purposes of this subchapter, exchange-traded funds shall be considered as common stock in determining all applicable limitations contained in this subchapter.

(b) In addition to making the investments described at (a) above, the Board may:

1. Exercise the rights or conversion privileges of any security acquired by the PFRSNJ;

2. Purchase the preferred stock, whether convertible or not, or rights of an entity the common stock of which qualifies for investment pursuant to this subchapter;

3. Purchase the convertible debt issue of an entity, the common stock of which qualifies for investment pursuant to this subchapter;

4. Purchase stock in new public offerings of entities that primarily invest in private equity; and

5. Retain any distribution received as a result of a corporate action or distribution by a private equity investment, even if the security does not meet the requirements of this subchapter.

(c) Notwithstanding the restrictions in this subchapter, the Board may authorize the purchase of private equity on a case-by-case basis if the Board determines such purchase to be in the financial best interest of the PFRSNJ and its beneficiaries and is consistent with the Board's fiduciary responsibility.

N.J. Admin. Code § 17:4A-24.1

Adopted by 53 N.J.R. 1147(a), effective 7/6/2021

Recodified from 17:4A-24.2 by 56 N.J.R. 795(a) effective 5/6/2024