New Mexico State Investment Council, Santa Fe, hired eight managers to run portions of the the $60.4 billion sovereign wealth fund's $9.6 billion non-U.S. equity portfolio and also committed $1.4 billion to alternative investment funds.
The manager hires were approved by the council’s board members at a monthly meeting Feb. 25.
The managers (and their allocations) are:
- ARGA International Equity (7.5%), an international large-cap value equity strategy managed by ARGA Investment Management.
- Lazard International Quality Growth (7.5%), an international large-cap growth equity strategy manged by Lazard Asset Management.
- Acadian All Country World ex-U.S. Equity (7.5%), an international large-cap core equity strategy managed by Acadian Asset Management.
- Dimensional Fund Advisors All Country ex-U.S. SMID Value (2.5%), an international small-cap value equity strategy.
- Driehaus International Small Cap Growth (2.5%), an international small-cap growth equity strategy managed by Driehaus Capital Management.
- EAM Non-U.S. Small Cap (2.5%), an international small-cap growth equity strategy managed by EAM Investors.
- Causeway International Small Cap (2.5%), an international small-cap core equity strategy managed by Causeway Capital Management.
- Man Numeric International Small Cap/Emerging Market Small Cap (2.5%), an international small-cap core equity strategy.
The council previously approved a slate of four managers for the non-U.S. equity portfolio, each with a 7.5% allocation.
All of the managers are new relationships and strategies for the council. All are expected to be funded by July 1, according to a council report. The funding source could not be immediately learned.
The council issued an RFP in June, reflecting a desire to change the international equity structure to include broadening the smidcap portfolio from one core passive strategy to include active value, growth and core strategies. It also wanted to expand the roster of international large-cap equity managers to reduce concentration risk and increase tactical flexibility.
The council also approved nine alternative investment commitments.
Five of the commitments are new relationships:
- $300 million to distressed debt fund Castlelake Asset Based Private Credit III E.
- $200 million to Sculptor Real Estate Fund V and $100 million to a co-investment vehicle, both managed by Sculptor Asset Management.
- $100 million to Arcline Capital Partners IV, a buyout fund managed by Arcline Investment Management.
- $15 million to 8VC Fund VI, an early stage venture capital fund, through the New Mexico private equity program.
And four commitments to existing managers. The SIC made commitments to three private equity funds managed by Bain Capital: $150 million to buyout fund Bain Capital Fund XIV, plus up to $300 million to a co-investment vehicle; and $100 million to Bain Capital Insurance Fund II. The wealth fund also made a follow-on commitment of $100 million to a co-investment vehicle managed by Silver Rock Capital Partners.
