New Mexico Educational re-ups $100m with BlackRock(2)

The $9.9bn pension will commit between $225m and $250m to private equity in 2013.

The New Mexico Educational Retirement System has committed $100 million to a separate account with BlackRock that will make private equity co-investments.

The re-up investment comes following a $100 million commitment in 2009 to BlackRock/ERB Co-investment Fund, another limited partnership with BlackRock where the pension acted as the sole limited partner.

“This is essentially Co-investment Fund II”, New Mexico chief investment officer Bob Jacksha told Private Equity International in an email, adding that the fund will co-invest “alongside leading private equity sponsors primarily in traditional buyout transactions and to a lesser extent growth equity, private debt, distressed debt and mezzanine strategies”.

Fund I has a three-year IRR of 17.26 percent and a since inception IRR of 15.79 percent, according to pension documents.

New Mexico has investments with four other 2012 vintage funds, committing $40 million to Ares Corporate Opportunities Fund, $75 million to TPG Growth II, $40 million to W Capital Partners III and $75 million to Warburg Pincus Private Equity XI.

The pension plans to invest between $225 million and $250 million to private equity in 2013. New Mexico has a 10 percent target allocation and a 6.3 percent actual allocation to the asset class.

New Mexico’s private equity portfolio generated an 18.5 percent IRR as of 30 September 2012. Launched in 2006, the pension’s private markets portfolio has generated a 9.47 percent IRR and a 1.21 total value to capital call multiple since inception.

New Mexico’s private markets portfolio is split among 44 percent in buyouts, 15 percent in distressed, 11 percent each in secondaries and co-investments, 10 percent in mezzanine, 6 percent in growth equity and 3 percent in venture capital.

The pension has $9.9 billion of total assets, with $1.14 billion of commitments to 36 private equity funds.