By David G.
The New Mexico
State Investment Council (SIC) has hit its average annual commitment target for
private equity, agreeing to invest in three funds that bring additional
diversity to its portfolio.
SIC’s board-approved commitments of up to $35 million to Cure Ventures Fund I, L.P., up to $50 million to Bain Capital Asia Fund V, L.P. and up to €75 million (US$74.6 million) in two funds from Waterland Private Equity Investments B.V. With the $160 million in new investments, SIC has now approved 11 private equity fund commitments totaling $665 million in 2022. It targets average annual commitments of $600 million to $700 million for its National Private Equity Program – which invests in funds outside of New Mexico.
Private equity currently accounts for 13.5% of SIC’s $36.4 billion portfolio. It has a 13% target to the asset class.
Each of the three funds are novel for SIC.
Cure Ventures is a new venture firm, focused on early-stage biotech. SIC has a 0% to 5% target allocation to venture within the National Private Equity Program. SIC has invested $185 million in other Bain Capital Funds, but this is the first one it has invested in that is focused on Asia. The fund helps the sovereign wealth fund with its 10% to 25% target to Asia and emerging markets. SIC also has not previously backed any prior funds from Waterland, a middle-market private equity firm focused on Western and Northern Europe.
SIC also agreed to back two infrastructure-related funds and a distressed specialty lending firm.
It is committing up to $100 million in Macquarie Infrastructure Partners VI, up to $150 million to Brookfield Infrastructure Debt Fund III and up to $150 million to Silver Point Specialty Credit Fund III. SIC has backed four prior funds from Macquarie – the world’s largest infrastructure manager. It previously committed $125 million to Brookfield’s prior debt fund. SIC has previously invested in three other Silver Point funds.
SIC manages the investments for New Mexico’s four permanent funds: the Land Grant Permanent Fund, the Severance Tax Permanent Fund, the Tobacco Settlement Permanent Fund, and the Water Trust Fund. It invests the royalties and taxes that come from natural resources and income from sales and leases of public lands and minerals.
The Land Grant fund is the largest at $24.7 billion as of September 30. It reported a negative 2.2% return for the fiscal year ended June 30.