The investment is a re-up commitment for New Mexico SIC, which previously committed $50 million to EIG’s Fund XV. That fund was EIG’s first independently raised vehicle since completing its spin-out from Los Angeles-based asset manager TCW in December 2010. EIG invests in the energy sector, focusing primarily on oil and gas exploration and production, gathering and processing, renewable energy, power generation and energy infrastructure.
“This just about wraps up the energy portion of the portfolio,” New Mexico SIC spokesperson Charles Wollman told Private Equity International, adding that the system may commit to “one or two additional [energy] funds at smaller sizes over the next 12 months”.
New Mexico SIC also made its first commitment to a “pure Europe real estate fund” at the Tuesday meeting, Wollman said, committing about $65 million to Perella Weinberg Real Estate Fund II.
“We felt that Perella Weinberg is a strong partner to invest with in this space,” he said. “We’ve made private equity commitments with European distressed exposure over the last six months and several of our debt managers are investing in the space currently, but this is the first in the real estate portfolio.”
New Mexico SIC plans to commit around $450 million to private equity in 2013, having committed $450 million to the asset class in 2012. During the 12-month period ending 30 September, 2012, the $16.5 billion endowment’s private equity portfolio returned 5.9 percent, according to the council’s 2013 annual plan.
“On a look-forward basis for 2013, opportunities for return look richest in the growth and expansion area and the small-, middle-, large- and mega-buyout area in North America,” the report said.
In January, New Mexico approved a $25 million commitment to Brookfield Capital Partners Fund III.
New Mexico SIC committed to six private equity managers in 2012: Ares Corporate Opportunities IV, Asia Alternatives Capital Partners III, Coller International Partners VI, Nordic Capital VIII, Pine Brook Capital Partners II and TowerBrook Investors IV. The endowment has a 10 percent target allocation to private equity and an actual allocation of roughly 10.5 percent.