New Jersey Division of Investment · State of New Jersey · $85.9B
New Jersey publishes a fund's terms before it invests
Every private fund New Jersey is about to back gets a public memo naming the management fee, the basis it is charged on, the offset, the carried interest, the hurdle and the general partner's own commitment. The memo for Wind Point Partners XI-A was published on 22 January 2026, ahead of the council meeting that considered the commitment. The archive runs back to 2005. It turns a manager's claim that terms are market into something you can check.
Key numbers, and what they mean
Every fund
Presented to the State Investment Council gets its terms published first, in an archive going back to 2005 across nine asset classes. The memos are dated; the fund closings mostly are not, so the lead time varies and is rarely disclosed.
2% vs 2%
Two mid-market buyout funds, each raising $2.5 billion as stated in their memos, presented at the same meeting on the same day. One states the basis, the step-down and a 100% fee offset. The other states only the number.
25% to 30%
One venture fund's carried interest, which rises to 30% only after it has returned 2.5 times capital in cash. Another charges 30% from the first dollar of gain. Neither has a hurdle, which in US venture is the market.
Not stated
The waterfall is the one field the template never carries. Even this template omits whether carry is paid deal by deal or across the whole fund, which is the term that decides when carry is actually taken.
Asset mix, May 2026
Public equity49.5%
Cash and Treasuries12.1%
Private equity9.1%
Real estate and real assets8.4%
High yield and other7.3%
Investment grade credit6.9%
Private credit6.6%
Its own line items, grouped. Private equity is 9.1% against a 13% target, and a plan its council adopted in April 2026 cuts that target to 11% from fiscal 2027.
The read-through
From the report
Takeaway: how to apply it to a portfolio
One buyout fund states its fee as 2% on commitments during the investment period and 1.75% on net investment contributions thereafter, with a 100% fee offset. Another, presented the same day, raising the same $2.5 billion for the same strategy, states only 2%.
The number is not the term. Ask for the basis, the step-down after the investment period and the offset percentage separately and in writing. Two funds can quote you the same headline and charge very different amounts over ten years.
One venture fund charges 2.075% on committed capital for the full term. Another charges 2.0% on committed capital, stepping down 0.25% a year from the sixth anniversary for four years. A private credit account charges 0.80% on invested capital inclusive of one times leverage.
Three funds, three different clocks. Committed capital for the full term means paying on money already returned to you. A leverage-inclusive base nearly doubles what the rate applies to. Model the fee as a stream of dollars against your own expected drawdown, not as a percentage.
The template names the fee, the offset, the carry, the hurdle and the sponsor commitment, and does not name the waterfall type.
Even this template omits the thing that decides when carry actually gets paid. Add three questions no memo will answer for you: whole fund or deal by deal, what the catch-up rate is, and whether the clawback is escrowed.
The Argus lensThese memos are pre-negotiation headline terms, and every one says staff will still negotiate the legal documents afterwards. The gap between a term sheet and an executed agreement is where the money is, and closing that gap is the work we do.
Benchmark your deals in the Portal →
About the source
The Division publishes a memo for every alternative investment presented to its State Investment Council, in an archive going back to 2005 and organised by asset class. Each memo carries a fund details box naming the management fee, additional expenses including the offset, the incentive fee, the hurdle and the general partner commitment. Fund values, returns and the asset mix come from its director's report for May 2026 and its annual report for the year ended 30 June 2025.