New Mexico State Investment Council, Santa Fe, committed $125 million to Clarion Partners Lion Properties Fund, a core open-end real estate fund, said Charles Wollmann, spokesman for the $25.8 billion endowments, in an email.
Endowment officials have invested with real estate manager Clarion Partners in the past, including to its Clarion Partners Lion Industrial Trust, but this is the council's first commitment to one of its core funds. The commitment was made, in part, due to an influx of $525 million in new capital from New Mexico's new rainy day fund; the tax stabilization reserve has a 20% long-term allocation target to real estate, Mr. Wollmann said.
The council also approved at its Tuesday meeting committing an additional $5 million to the 2017 New Mexico Co-Investment Fund, managed by Sun Mountain Capital, which makes venture capital investments in New Mexico. The new commitment is a stopgap while the council completes a new private equity structure study. The study should be completed by the end of 2019.
Separately, the council renewed the contract of RVK, its general investment consultant for four years. RVK has been the general investment consultant for the endowments since 2011. Its contract was set to expire at the end of 2019.