
The New Mexico State Investment Council's private equity investments advisory committee has recommended that $85 million (€53.8 million) in follow-on investments be approved at the board's 22 April meeting, public information officer Charles Wollmann told PEO.
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The committee has recommended an additional $35 million be allocated to the Levine Liechtman Capital Partners IV fund, which is targeting $1 billion according to the Probitas Partners 2008 Private Equity Deskbook. Also recommended is a $50 million follow-on investment in Clayton Dubilier & Rice's eighth fund, which is targeting $5 billion according to Probitas.
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The $15.4 billion investment council, which invests on behalf of the state's three permanent endowment trust funds, has a private equity allocation target of 6 percent. The council invests 25 percent of assets in alternative investments.
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The council states it “shall give consideration to investments in private equity funds whose investments enhance the economic development objectives of the state; provided such investments offer a rate of return and safety comparable to other private equity investments currently available”.
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No more than 10 percent of the private equity allocation is permitted to be invested in a single fund and the council's investment may not exceed 20 percent of the committed capital in any given fund.
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The State Investment Council's board recently approved $105 million in commitments across three private equity vehicles: €30 million to Bridgepoint Europe IV, $30 million to The Carlyle Group's second mezzanine fund and $30 million to Platinum Equity Capital's second fund.