New Mexico State Investment Council, Santa Fe, committed up to $105 million to three alternative investment funds, spokesman Charles Wollmann said in an email.
On Tuesday, the council committed up to $60 million to Berkshire Multifamily Debt Fund III and $40 million to Berkshire Bridge Loan Investors II, both managed by Berkshire Residential Investments.
Berkshire Multifamily Debt III would invest 85% or more of its capital in Freddie Mac's K-Program, which was created after the global financial crisis to securitize multifamily loans traditionally held on Freddie Mac's balance sheet, according to a staff memo of the council's meeting.
Compared to Berkshire Multifamily Debt III, Berkshire Bridge Loan Investors II would invest in shorter duration loans, (2-3 years compared to 7-10 years), larger loan sizes (about $40 million vs. $20 million), greater income as a component of total return (100% vs. about 60%) and floating rate loans (100% vs. about 40%).
The council has invested with Berkshire in the past. The council's real estate consultant, Townsend Group, assisted.
Separately, the council committed up to $5 million to Scout Ventures III as part of its New Mexico venture capital portfolio. This is the council's first investment with the early-stage venture capital firm.
