New Mexico set to make $85m in follow-on commitments

The state investment council's board will soon vote on allocations to Los Angeles private equity firm Levine Liechtman and Clayton Dubilier & Rice.

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.
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.
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.
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”.
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.
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.