The New Jersey State Investment Council is considering an increase to its private debt allocation while scaling back on credit-focused hedge funds. The council, which oversees some $68 billion in assets for New Jersey’s state pension fund, is seeking to capture added returns from a larger footprint in private debt, while it tries to mitigate the risks of changing interest rates. New Jersey’s investment team has proposed raising the pension fund’s allocation to debt-focused private equity to 2% of assets from the current 1% allocation, while cutting the target allocation to credit hedge funds to 1.5% from 3.75%. The pension...