New Mexico commits to EnCap, Nordic

The New Mexico State Investment Council invested $150m between new offerings from Nordic Capital and EnCap Investments.

The New Mexico State Investment Council approved commitments of up to $75 million for both Nordic Capital Fund VIII and EnCap Energy Capital Fund IX at its meeting Tuesday, spokesman Charles Wollman told Private Equity International.

Nordic will invest in mid-market companies in Nordic and German-speaking Europe, with a specific focus on the healthcare sector, according to an LP Capital Advisors report made available by the SIC.

The firm recently lowered its target on Fund VIII, dropping from €4 billion to between €3 billion and €3.5 billion. One LP contacted by Private Equity International in October called the move “sensible”, given current market conditions. “The fundraising climate is not as positive as it was last year when [fellow Nordic firm] EQT raised a fund of a similar size,” the investor said. “The macro-economic uncertainties are higher.”

New Mexico also backed EnCap, which is reportedly targeting $4.25 billion for its ninth energy capital fund. Earlier this week, Thomson Reuters reported that managing partner David Miller said the firm was on the brink of closing the vehicle.

Fund IX will invest in “experienced, technical management teams that acquire and develop land for hydrocarbon production”, according to an LP Capital Advisors report.   

In addition to its commitments to Nordic and EnCap, the council also committed an additional $20 million to the New Mexico Co-Investment Fund, managed by Sun Mountain Capital.

The New Mexico State Investment Council manages the state’s $15 billion permanent endowment. The SIC’s national private equity programme had delivered annualised returns of 11.6 percent as of 2011, according to its website.