New Mexico State Investment Council, Santa Fe, on Tuesday committed $100 million to credit hedge fund Silver Point Distressed Opportunity Institutional Partners, managed by Silver Point Capital, said Charles Wollmann, spokesman for the $24.3 billion endowments.
The fund will make distressed and special situations investments worldwide, focusing on midcap companies in North America. The fund charges management fees only on invested capital, and the council will be paying a 1.35% management fee due to the size of its commitment. The council has invested with Silver Point in the past.
Separately, the council hired Colmore for fee collection and validation services for its alternative investments, following an invitation-only search. The council has $2.2 billion invested in real-return strategies, $1.9 billion invested each in private equity and real estate, and $604 million in absolute return. It launched the search for its first-ever alternatives fee consultant because "private equity costs are potentially incompletely reported by public investment funds," according to a report to the council. What's more, fees, expenses and carry are often offset against distributions, and may not be itemized in the reports that general partners provide investors, the report stated. The result is that limited partners may not have complete information on total cost and fees.