New Mexico likes Brookfield's 'skin in the game'

The $150bn asset manager has committed $250m towards its latest private equity fund’s $1bn target, according to the New Mexico State Investment Council.

Brookfield Asset Management is taking ‘skin in the game’ to another level. 

The New Mexico State Investment Council approved a $25 million commitment to Brookfield Capital Partners Fund III last week, a decision influenced in part by the firm’s apparent confidence in its own product, an SIC spokesperson told Private Equity International.

“The Council finds their strategy appealing, as well as the way they do business,” the spokesperson said in an email. “Brookfield is the largest investor in this $1 billion fund with a $250 million commitment.” 

Brookfield Asset Management declined to comment on this story. 

Brookfield’s two previous Capital Partners funds rank in the top quartile in both net internal rate of return and net multiple, according to a LP Capital report made available on New Mexico SIC’s website. 

The Council finds their strategy appealing, as well as the way they do business.

New Mexico SIC spokesperson

Fund III has a broad investment mandate in the US and Canada. As with previous Capital Partners’ funds, Brookfield will target mid-market companies in need of operational or capital structure improvement, according to the LP Capital report. 

Targeted companies will likely possess strong underlying real assets, primarily in sectors such as industrial products, building materials, metals, mining, homebuilding, oil and gas, paper and packaging, manufacturing and forest product sectors, according to the report.

Outside private equity, Brookfield also offers products in the real estate, infrastructure, and timberlands and agrilands sectors. The firm has approximately $150 billion in assets under management. 

Last year, New Mexico SIC committed $100 million to a timber fund managed by Brookfield. The SIC’s $15.2 billion asset pool had a 10.1 percent allocation to private equity as of 30 June, according to documents.