New Mexico has $45m for private equity

The retirement system had allocated $140m for private equity commitments at the beginning of the year, and has pledged more than half to Wayzata, IVP and NEA. The system also has capital left for real assets and real estate.

The New Mexico Public Employees’ Retirement Association has $45 million left for commitments to private equity this year, though the system may not spend the total amount.

The system had approved an allocation for private equity of $140 million in January, as well as $85 million for real assets and $70 million for real estate.

So far, the system has committed $95 million to private equity, including $35 million to Wayzata Opportunity Fund III, which is targeting $2.5 billion; $35 million to Institutional Venture Partners’ fourteenth fund, which closed on $1 billion in June and $25 million to New Enterprise Associates fourteenth fund, which is targeting about $2.6 billion.

We're not in any hurry to deploy funds if we don't find compelling investment strategies.

Joelle Mevi, CIO, New Mexico PERA

New Mexico Public Employees’ also has $55 million left for real assets commitments, and $35 million for real estate. The system committed $30 million to Riverstone Holdings’ fifth global energy and power fund, targeting $6 billion, which fell within the system’s real assets bucket; and $35 million to Rockwood Capital IX, which is targeting $750 million with a hard-cap of $1 billion. The Rockwood commitment fell into the real estate category.

Spending the entire budget for an asset class depends on the state of the market, according to New Mexico PERA’s chief investment officer, Joelle Mevi. The system doesn’t always use its full budget.

“We’re not in any hurry to deploy funds if we don’t find compelling investment strategies,” Mevi told Private Equity International Wednesday. “Not committing the entire annual budget isn’t unusual for [the system] with regard to private partnerships. The investment environment in any given vintage year is a determining factor.”

As of the end of last year, the system had about $792 million committed to 33 private partnerships with $466 million committed, according to a New Mexico PERA investment report issued in March. As of March the system had a 3.7 percent actual allocation to private equity, slightly over the interim target of 3.5 percent.