Searches and Hires

New Mexico commits $100 million to Blackstone real estate fund

New Mexico State Investment Council, Santa Fe, committed up to $100 million to Blackstone Real Estate Partners IX, said Charles Wollmann, spokesman for the $24.6 billion endowments.

The council has invested with Blackstone Group in the past including a $75 million commitment to Blackstone Real Estate Partners VIII in 2015.

The council's real estate and real assets consultant, Townsend Group, assisted.

Blackstone's latest real estate fund will invest in large complicated transactions with a minimum of 60% of the fund's total capital to be invested in the U.S. and Canada. The fund will get international exposure by investing alongside two of Blackstone's other real estate funds, Blackstone Real Estate Partners Europe V and Blackstone Real Estate Partners Asia II. Blackstone Real Estate Partners IX will invest about 20% of each investment made by the two international funds. The BREP IX has a $17 billion fundraising target.

Separately, the council settled with two defendants in pay-to-play lawsuits. Shoreline Inc., which managed hedge fund-of-funds manager HFV Asset Management, agreed to pay $5.65 million. The council in 2017 sued HFV Asset Management for damages from its use of third-party marketer Marc Correra to get investments from the council.

Hedge fund manager Barrett Wissman paid the council $15,000 to settle a 2011 pay-to-play lawsuit against him alleging that he aided and abetted breaches of fiduciary duties.

"(Mr.) Wissman has cooperated with the SIC by providing critical information supporting claims against other parties involved in pay-to-play," according to a memo for the council's Nov. 27 meeting.