New Mexico Public Employees Retirement Association, Santa Fe, allocated $320 million to three managers, said Jonathan Grabel, chief investment officer for the $14.4 billion pension fund.
Pension fund officials committed up to $85 million to FountainVest China Growth Capital Fund III, which would invest in buyouts, investing $100 million to $200 million of equity in Chinese companies with strong growth prospects. This is New Mexico PERA's first investment with private equity manager FountainVest Partners.
The pension fund also committed up to $75 million to real estate fund Harrison Street Real Estate Partners VI, managed by Harrison Street Real Estate Capital. New Mexico PERA is an investor in Harrison Street's prior fund, committing up to $45 million to Harrison Street Real Estate Partners V.
Separately, pension fund officials are investing an additional $160 million in a master limited partnership separate account managed by Harvest Fund Advisors, bringing the total to $280 million, as part of the pension fund's plan to fill out its 20% allocation to real assets. In May, its real assets allocation was increased to 20% from 13%. Currently, the pension fund has $1.2 billion in its real assets portfolio.