New Mexico SIC Commits $177M to PE, Industrial Funds

By Mario Marroquin

The $35.5 billion AUM State of New Mexico Investment Council voted to commit resources to funds in venture capital, US industrial real estate and distressed opportunities in Europe this week.

Members of the investment council voted unanimously to deploy a total of $177.5 million towards funds by EQT Exeter, TDR and Scale Ventures.

The three commitments approved by the council are:

  • Up to $100 million to EQT Exeter Industrial Value Fund VI
  • Up to $52.5 million to TDR Fund V
  • Up to $25 million to Scale Ventures VIII

Meeting materials from SIC said 16 other commitments exceeding $1.3 billion have been made since January 25. Private equity, real estate and fixed income funds have been the target asset types for SIC this year.

Despite low cap rates and rising interest rates, US industrial real estate continues to attract capital from public pension funds. Markets Group reported in May that the Tennessee Consolidated Retirement System approved a $100 million towards an industrial fund by EQT Exeter.

The Maryland State Retirement & Pension System was reported to have increased its exposure towards Rexford Industrial this month. Pennsylvania Public School Employees’ Retirement System approved a $100 million commitment towards an industrial fund by EQT Exeter in March.

According to a performance report from April, the New Mexico State Investment Council has seen a calendar year to date return of -5.5% across its entire portfolio.

Charles Wollmann, the Director of Communications, Legislative and Client Relations at the investment council said Western New Mexico University and the North Central Regional Transit District will both begin to invest alongside SIC this year and in fiscal year 2023 respectively.

Members of the investment council also voted unanimously to terminate Franklin Resources from its role as a public equity manager to the council and to redistribute its assets to AllianceBernstein.