New Mexico State Investment Council, Santa Fe, committed $100 million to buyout fund Platinum Equity Capital Partners IV, said Charles Wollmann, spokesman for the $19.4 billion endowment, in an e-mail.
Platinum executives plan to invest in companies requiring operational turnarounds or companies involved in complex situations, such as corporate spinoffs or bankruptcy reorganizations.
The council has made total commitments of $105 million to two prior Platinum Equity funds. Private equity consultant LP Capital Advisors assisted.
The council also at its July 26 meeting approved an exception to the large-cap growth strategy allocation range of the $216 million J.P. Morgan Asset Management Russell 1000 Growth index portfolio. In June, the council changed its interim policy target allocations, lowering the U.S. equity target to 26% from 32%, and raising the target for fixed income to 23% from 20%. The difference would be used to increase real estate and real return by 1% each and to create a 1% cash target.
Council officials would cut J.P. Morgan's domestic large-cap growth portfolio, if necessary, due to a slight growth tilt in the overall domestic equity portfolio, stretched large-cap growth valuations and J.P. Morgan's “underperformance in a favorable environment,” according to summary notes from the July 14 meeting of the council investment committee, which recommended the action to the council.
The allocation changes could make the large-cap growth portfolio dip below its minimum strategic allocation range of 30% to U.S. equities.
J.P. Morgan spokesman Matthew Chisum declined to comment.