The New Mexico Public Employees’ Retirement Association has approved a commitment of up to $40 million to Carlyle Partners VI, which is targeting $10 billion.
Carlyle has raised about 60 percent of its target for the US-focused buyout fund, the firm said during an earnings call last month. New Mexico previously invested in Carlyle’s $13.7 billion Fund V as well as the firm’s most recent real estate funds, Carlyle Realty Partners V and Carlyle Realty Partners VI.
“We like that they’re an existing relationship, we like that the performance has been good [and] we’re looking to continue the relationship,” deputy chief investment officer Julian Baca told Private Equity International. “We like the diversification that investing in this fund brings to our overall fund. We haven’t done many large deals recently.”
New Mexico has $170 million for private equity in 2013, north of the $140 million the retirement system set aside for the asset class in 2012. New Mexico has a 5 percent target allocation to private equity and an actual allocation of 3.85 percent.
Last year, New Mexico committed $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 last June, and $25 million to New Enterprise Associates fourteenth fund, which closed on $2.6 billion last July.
The $12.4 billion retirement system has committed $890 million to private equity since inception, and has existing investments with 36 private equity funds.