New Mexico Educational Retirement Board, Santa Fe, will slow the pace of its private equity commitments and pull back on some commitments that “no longer fit with the plan for this year,” as part of the $7.6 billion board's new strategic plan for its investments, said CIO Bob Jacksha.
From now through the end of the year, $40 million is scheduled to be committed to mezzanine investments and $20 million to energy under the strategic plan; the board has committed $165 million to private equity so far in 2009.
The board has terminated $70 million of a $75 million commitment to Erasmus Co-Investment and ended negotiations for its $20 million commitment to NGP Energy Technology Partners II because it could not agree to some non-economic contract terms, Mr. Jacksha said; he would not elaborate on the contract terms.
The board also terminated its commitments to Sevin Rosen Fund X and Lee Equity Partners Fund, he said. The commitment sizes could not be learned by press time.
The board's private equity target allocation is 10%.
Separately, the fund's investments returned 14.1% for the second quarter and 7.8% for the year ended June 30.
In addition, the board is expected to consider adopting a placement agent policy at its Sept. 11 board meeting. The details are still being worked out, but Mr. Jacksha said the new policy may include more requirements for investment managers to improve transparency.
