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New Mexico private equity returns 10.3%

The New Mexico State Investment Council’s $1.52bn private equity portfolio has returned 3.33% since 2001.

The New Mexico State Investment Council’s private equity portfolio posted returns of 10.3 percent for the 2013 fiscal year, according to documents from the pension system.
The returns missed the 80/20 Cambridge Private Equity Index by about 1 percent, but beat the Venture Economics All Private Equity Index by 2.6 percent. The system weighs both benchmarks when reviewing its returns, though the Cambridge index is more parallel to the asset class’s allocation in the fund, a spokesperson told Private Equity International.

Since 1 June 2001, the portfolio has returned 3.3 percent, though the pension system began investing in the asset class in 1998, according to the spokesperson.

The 3.3 percent return misses the 11.33 percent return set by the Cambridge index and the 8.79 percent set by Venture Economics, the statement disclosed. But a Venture Economics 20-year benchmark estimates returns of 11.5 percent, which the spokesperson said is more comparable to the portfolio's return rate since 1998 which is closer to 11.2 percent. 

New Mexico SIC’s private equity portfolio totaled $1.52 billion, or 8.9 percent of its total assets as of 30 June. During the year, the allocation to private equity slipped 0.3 percent, according to the documents. The portfolio does not include commitments made from the system’s severance tax fund, which are invested in local New Mexico-based funds. 

During the fiscal year, the council committed up to $75 million to Nordic Capital Fund VIII, KPS Special Situations Fund IV and EnCap Energy Capital Fund IX, PEI previously wrote.
New Mexico SIC’s entire fund returned 13.28 percent during the 2013 fiscal year, according to a statement from the system. The return is nearly double its 7.5 percent target for the year.