New Mexico backs Affinity Asia(2)

The State Investment Council shelved a possible commitment to Triton Fund IV after staff was unable to come to terms with the firm, which is targeting €2.4bn for Northern European deals.

The New Mexico State Investment Council approved a $75 million commitment to Affinity Asia IV at its meeting Tuesday, a spokesperson told Private Equity International.

Earlier this month, Affinity held a $1.4 billion first close for its fourth fund, which is targeting $3.5 billion for control buyouts “lower risk, advanced economies” in Asia, including Korea, Australia, New Zealand, Greater China and Southeast Asia, according to New Mexico meeting materials. 

The firm maintains offices in Seoul, Beijing, Hong Kong, Singapore, Jakarta and Sydney and has completed approximately $12 billion in transactions since its 1998 launch, according to documents. 

Affinity’s previous vehicle, a $2.8 billion 2007 vintage, had generated a 15.7 percent net internal rate of return and 1.5x multiple as of 30 September, according to the California Public Employees’ Retirement System documents. 

The SIC had also been scheduled to consider a commitment between $50 million and $75 million to Triton Fund IV, a Northern Europe-focused fund targeting €2.4 billion, but investment staff was unable to agree to terms with the firm.  

“Triton and SIC could not agree on several terms related to side-letter requirements, and our understanding is they are oversubscribed,” the New Mexico spokesperson said in an email. “A good group, but this is a re-up we won't be able to do.”  

Triton could not be reached for comment at press time. 

Along with its commitment to Affinity, the SIC also approved $100 million commitments to both Brookfield Infrastructure Fund II and IFM Global Infrastructure Fund, the spokesperson said. 

The New Mexico State Investment Council manages approximately $16.5 billion in assets for the state’s Land Grant Permanent Fund, its Severance Tax Fund and 17 other government clients. The SIC approved commitments to KPS Special Situations Fund IV and Brookfield Capital Partners Fund III earlier this year.