Endowments

New Mexico State Investment Council commits to 3 alternative funds

New Mexico State Investment Council, Santa Fe, has committed up to $400 million to three alternative investments funds, Charles Wollmann, spokesman for the $24.2 billion endowment, said in an email.

The council at its Tuesday meeting committed up to $200 million to PIMCO Private Income Fund, an evergreen, private credit fund, with a two-year lockup and subsequent annual optional withdrawal opportunities. The fund would invest in residential and commercial real estate, specialty finance and corporate credit. It has a $1 billion target. The council has been offered discounted management fees as a founders' class investor and a 10% performance fee over a 5% hurdle rate. The council has invested with PIMCO in the past.

The council also committed up to $100 million each to TA XIII-A, a middle market growth equity fund managed by TA Associates, and Brookfield Infrastructure Fund IV, a global value-added infrastructure fund managed by Brookfield Asset Management. The council has previously invested with both managers.

Separately, New Mexico State Investment Council said it is fully redeeming its $98.9 million investment in Berkshire Multifamily Income Realty Fund.

"While we like the manager and had positive returns from this fund, the council had concerns over scalability of the open-ended fund looking forward," Mr. Wollmann said. The council had committed $75 million to the fund in 2015.

The council also voted to approve an extension and expansion of private equity consultant Pavilion Alternatives Group's role to not only include its national and international private equity but also its regional-focused programs. The council's current regional private equity consultant, Sun Mountain Capital, will still manage five co-investment funds and a significant portion of its New Mexico-focused venture capital investments.

"Sun Mountain has done good work for us, but the council is looking for uniformity in our PE reporting and assessment processes," Mr. Wollmann said. Pavilion's contract will expire March 15, 2023. The council has $2.3 billion in its national private equity and $409.9 million in its regional private equity programs.