N.J. Admin. Code § 17:16-90.2

Current through Register Vol. 56, No. 24, December 18, 2024

Section 17:16-90.2 - Permissible investments

(a) Subject to the limitations contained in this subchapter, the Director may invest and reinvest the moneys of any eligible fund 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 subject to the further provisos as contained at N.J.A.C. 17:16-69.9;

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; and

3. Purchase exchange-traded funds traded on a securities exchange or the over-the-counter market that primarily invest 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 (a) above, the Director may:

1. Exercise the rights or conversion privileges of any security acquired under this subchapter;

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

3. Purchase the convertible debt issue of an entity, the common stock of which qualifies for investment under 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 contained in this subchapter, the Council may approve the purchase of private equity on a case-by-case basis.

N.J. Admin. Code § 17:16-90.2

Amended by R.2006 d.317, effective 9/5/2006.
See: 38 N.J.R. 2039(a), 38 N.J.R. 3632(a).
In the introductory paragraph of (a), inserted "and reinvest the moneys of any eligible fund"; and rewrote (a)1 through (a)3.
Amended by R.2007 d.266, effective 8/20/2007.
See: 39 N.J.R. 1470(a), 39 N.J.R. 3551(b).
Added (b).
Amended by R.2008 d.243, effective 8/18/2008.
See: 40 N.J.R. 2097(a), 40 N.J.R. 4827(a).
In the introductory paragraph of (a), deleted "through separate accounts, funds-of-funds, limited partnerships, direct investments, co-investments and joint ventures" following "equity"; rewrote (a)1 through (a)3; and added (c).
Amended by R.2014 d.038, effective 3/3/2014.
See: 45 N.J.R. 1477(a), 46 N.J.R. 442(a).
Rewrote the section.

Amended by 53 N.J.R. 1857(a), effective 11/1/2021