New York businesses boosted by investment to state public worker pension plan

New York businesses are getting a boost to the tune of $350 million through the state’s public worker pension plan.

State Comptroller Thomas DiNapoli announced Monday that the New York State Common Retirement Fund would invest that amount as part of its private equity investment program. The money will go into two co-investment funds managed by Hamilton Lane, an alternative investment management firm.

According to a release from DiNapoli’s office, the money will be used to invest in 16 to 18 emerging New York businesses. Those companies will likely have values between $10 million and $1 billion.

The new investments are expected to range between $5 million to $20 million.

“Throughout this process, we have supported companies of all sizes, with diverse ownership and missions and within sectors ranging from software and manufacturing to health care and renewable energy generation,” Hamilton Lane Managing Director David Helgerson said in a statement. “We are proud to have helped deliver strong returns to the fund while simultaneously supporting the economic growth and vitality of people and businesses throughout the state.”

According to DiNapoli, the state’s common pension fund has invested more than $2 billion in New York businesses, with most of those contributions coming after he took office in 2007. More than 520 Empire State companies have received investments, and more than half of the funding has gone to businesses outside New York City.

“The In-State Program has helped hundreds of New York businesses add and retain thousands of jobs and grow while achieving solid returns for the retirement system members and their beneficiaries that rely on the pension fund for their retirement security,” DiNapoli said. “We’ve committed more than $2 billion through this program to invest in New York state companies, and I’m proud to continue building on our successful track record.”

DiNapoli’s office added that – as of March 31, 2021 – the program had generated more than $1.5 billion in returns to the state based on more than 250 investments totaling nearly $850 million.

The Common Retirement Fund is one of the largest funds in the country, as it includes more than 1 million state and local government workers employed by more than 3,000 agencies across New York. As of the end of last year, it had assets totaling about $279.7 billion.