New Mexico Educational Retirement Board, Santa Fe, committed a total of $350 million to three alternative investment firms, said Bob Jacksha, chief investment officer, in an e-mail.
The $11.4 billion pension fund committed $150 million to Lone Star Fund X, a real estate credit fund managed by alternative investment manager Lone Star Funds. This is the pension fund’s sixth investment with Lone Star.
It also committed $100 million to a fund of one Caledon Infrastructure Co-Investment Fund II. This is the ERB’s second investment with infrastructure manager Caledon Capital Management.
Also, the pension fund committed $50 million each to private equity funds Z Capital Credit Tactical Fund and Z Capital Credit Tactical Fund’s sidecar fund. This is its second investment with Z Capital Partners.
Separately, the pension fund tweaked its asset allocation, which adds a new 5% allocation to other diversifying assets. The asset allocation also reduces domestic large-cap equity to 16% from 18%, emerging international equities to 9% from 10%, opportunistic credit to 18% from 20%, global tactical asset allocation to 4% from 5% and risk parity to 3% from 5%. Domestic smidcap equity was raised to 3% from 2% and private equity to 13% from 11%. The new asset allocation follows an asset-liability study completed by the pension fund’s general investment consultant, NEPC, in June.
Allocations that stayed the same are 8% real assets, 7% real estate, 6% core bonds, 5% international equities, 2% emerging markets debt and 1% cash.
