New York City Comptroller Brad Lander wants state lawmakers to increase the share of its pension fund assets that can be invested in more expensive and opaque asset classes like private equity that promise higher returns.

Mr. Lander is asking Gov. Kathy Hochul and the legislature for authority to raise a cap on alternative assets — which also include direct loans to companies and private real estate — to 35% from 25% to maximize returns for the pension funds that hold $275 billion.

A provision in state law, known as the “basket clause” that sets the cap hasn’t been adjusted since 2006. Former Gov. Andrew Cuomo vetoed a bill to increase the share to 30% in 2014.

NYC comptroller seeks to raise pension fund cap on alternatives to 35% | Pensions & Investments