New Mexico PERA sets aside $290m for PE

The $14 billion system also plans to commit $80m to real estate funds this year. 

The Public Employees Retirement Association of New Mexico plans to commit $290 million to private equity in 2014, according to documents from the system’s alternative asset consultant Cliffwater.

New Mexico’s commitment budget is “reasonable and in-line with industry practices”, according to the documents.

In 2013, New Mexico committed $45 million to TPG Opportunities Fund III, a distressed debt fund which is reportedly targeting $2.5 billion, and $35 million to Lime Rock Resources Fund III, which held a final close on $750 million last October for US oil and gas properties.

New Mexico also plans to commit $80 million to real estate funds this year and $200 million to real asset partnerships, according to the documents.

New Mexico has a target allocation to private equity of 20 percent and an actual allocation of 23 percent. The $14 billion system’s private equity portfolio stood at about $557 billion as of 31 December 2013, or roughly 3.9 percent of its total assets.