New Mexico commits $75m to Pine Brook

The $15bn endowment has established a new GP relationship by committing to Pine Brook, which is targeting $2 bn for its second fund.

The New Mexico State Investment Council committed $75 million to Pine Brook’s second Capital Partners fund at its meeting Tuesday.
 
While the majority of funds SIC has committed to in 2012 have been re-ups, the council, which oversees the state's $15 billion endowment, has not previously invested with Pine Brook, spokesman Charles Wollman told Private Equity International.
 
Pine Brook Capital Partners II is targeting $2 billion and has a similar investment strategy to that of its predecessor, focusing heavily on the energy and financial services sectors with specific interest in oil and natural gas, exploration and production, oilfield services, transportation and storage infrastructure, power generation and transmission companies. The firm rarely deploys debt in its investments, relying instead on a strategy that invests equity in companies the firm has helped build from the ground up.
 
In July, Fund II received a $50 million commitment from the Kansas Public Employees’ Retirement System, KPERS spokeswoman Kristen Basso previously told Private Equity International. Pine Brook president and chief executive officer Howard Newman is the only person listed as a general partner on the SEC documents, though the firm’s other managing directors are also key men on the vehicle, according to one market source.
 
Credit Suisse Securities is a placement agent for Fund II. 

Earlier this year, New Mexico committed $125 each to Sankaty Advisors’ fifth debt fund and Coller Capital’s sixth vehicle. The endowment also committed $75 million to Ares Capital’s fourth fund focused on distressed investments in North America and $75 million to Asia Alternatives Capital Partners’ third fund.

New Mexico has a current allocation to private equity of about 11 percent and a long term target of 10 percent. The endowment’s national private equity programme has generated an 11.6 percent internal rate of return since inception as of 31 May, according to the SIC’s website.