New Mexico State Investment Council, Santa Fe, will launch three searches for managers to run a total of about $1 billion in international equities, said Charles Wollmann, spokesman for the $20.5 billion endowment.
The search follows passage by New Mexico voters of a measure in November eliminating the 15% statutory cap on international equities. The endowments' new allocation to international equities is 18% from the 15% cap. The rest of the funding comes from rebalancing and cash.
In the coming days, officials plan to launch an RFP for an international developed markets all-cap equity manager, an RFP for an emerging markets equity manager and an invitation to bid for smart beta managers specializing in value, quality, low-volatility or momentum strategies. The exact amount of each allocation has yet to be determined, Mr. Wollmann said. Selections are expected to be made as early as this summer.
Separately, the council at its Wednesday meeting committed $200 million to TIAA-CREF Global Agriculture II and $75 million to Blackstone Real Estate Partners VIII, managed by Blackstone Group, subject to state law and pending negotiations. The council has invested in other Blackstone Group funds, including Blackstone Energy Partners II.
Also, at its Jan. 27 meeting the council hired GAM USA to run $300 million in an unconstrained fixed-income strategy, Mr. Wollmann said.
The council selected GAM following an RFP launched Sept. 5. RVK, the endowment's general investment consultant, assisted. This is the council's first investment with GAM.
The council also committed $75 million each to private equity funds TPG Growth III, and BDCM Opportunity Fund IV, managed by Black Diamond Capital Management; and $50 million to Sorenson Capital Partners III.
The council has invested with TPG in the past, including to TPG Opportunities Partners III and TPG Asia VI. The other managers are new relationships.
