New Mexico commits $40m to Sterling

New Mexico State Investment Council, which manages the state’s oil and gas endowment, has committed to Sterling Partners' latest fund, which is targeting $1.2bn.

The New Mexico State Investment Council has committed up to $40 million to Sterling Capital Partners IV.

The $15 billion oil and gas endowment is invested in Sterling’s first fund, and its familiarity with the GP may have contributed to the council’s decision to commit, a spokesperson for the SIC told Private Equity International.

Sterling launched the fund in May and is targeting $1.2 billion. The Illinois-based firm’s third fund, which closed in 2007, focused primarily on $15 million to $100 million investments in companies in the education, healthcare services, direct marketing, business services, financial services and specialty manufacturing and distribution sectors.

The investment council also approved a request for proposals for an advisor to its in-state private equity programme. The SIC approved a three-month contract extension to its current in-state private equity advisor, Sun Mountain Capital, which will be invited to re-bid for the four-year contract.

SIC’s general private equity advisor is LP Capital Advisors, which started in the role earlier this year after after failing to agree on terms with its first choice StepStone Group.

SIC is undergoing an asset allocation study that may revise its private equity targets in the next few months. The current 10 percent target for private equity is not expected to significantly shift, if at all, a source told PEI.