New Mexico State Investment Council, Santa Fe, committed up to $125 million to two alternative investment funds, said Charles Wollmann, spokesman for the $23 billion endowments.
The council committed up to $75 million to KKR & Co.'s latest opportunistic real estate fund, KKR Real Estate Partners Americas II. The fund is targeting $1.5 billion for a fund that aims to offer a high double-digit gross internal rate of return over an eight-year term with modest leverage up to 70% loan to value. Investments will include real estate-related businesses. The primary focus for the fund is capitalizing on continued growth in demand for demographic-dependent real estate, which will consist of a number of alternative property types, according to a report to the council.
The council also committed up to $50 million to EnCap Flatrock Midstream Fund IV, a North American upstream and midstream energy fund with a $3.25 billion target. The council invested in EnCap Flatrock Midstream Fund III.
