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New Mexico State Investment Council outlines 2021 PE pacing plan

The pension plans to invest up to $650m annually in PE by 2025.

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Institution: New Mexico State Investment Council
Headquarters: Santa Fe, United States
AUM: $26.97 billion
Allocation to alternatives: 12.12%

The New Mexico State Investment Council has set in motion plans to commit a combined $2.65 billion to private equity funds from 2021 to 2025, according to an annual investment plan from its September 2020 investment meeting.

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Highlights from New Mexico SIC’s September 2020 investment committee meeting:

  • According to the institution’s five-year plan, $350 million to $650 million will be committed to private equity funds each year, beginning with $350 million in 2021.
  • The pension’s pacing model projects that the combined amount of these commitments to private equity funds from 2021 to 2025 will help the institution reach its 12 percent target, according to Mercer Consulting, the pension’s private equity consultant.
  • Investment into private equity performed well for New Mexico SIC, having brought in 13.7 percent in long-term returns in a 12-month period through March 2020, the highest of all the institution’s assets.
  • New Mexico State Investment Council has adopted a strategy to expand its long-term relationships with core managers for its private equity programme.
  • The pension has been committing $50 million to $100 million to core private equity funds since 2011, with the goal of decreasing the number of GP relationships/fund commitments, according to the investment plan. New Mexico SIC said that the decrease will be positive for portfolio monitoring and reducing the administrative workload that comes with managing many commitments.

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Robert “Vince” Smith serves as New Mexico SIC’s chief investment officer and deputy state investment officer. Prior to joining the pension in 2010, Smith was CIO of Kansas Public Employees Retirement System. Steve Moise is the system’s state investment officer. He also serves as managing member of Moise Livestock Company, according to LinkedIn.

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