New Mexico State Investment Council, Santa Fe, on Tuesday, committed a combined $500 million to three alternative investment funds, said Charles Wollmann, spokesman for the $43.1 billion endowment, in an email.
The council pledged up to $300 million to a private credit fund, Silver Rock Tactical Allocation Strategy, managed by Silver Rock Capital Partners. The fund would focus on credit-oriented special situations and, during periods of dislocation, targeted liquid credit investments. The fund would allow for reinvestment or recycling of principal, which is a key feature that the council is targeting for its private market portfolios.
"Recycling helps to keep funds invested and enhances the effects of compounding to improve MOIC (multiple on invested capital)," according to a staff memo to the council.
The council also committed up to $150 million to Oaktree Real Estate Opportunities Fund IX, a real estate fund that would buy distressed real estate debt or discounted real estate securities and provide rescue capital or participating equity recapitalizations of assets. The manager, Oaktree, is targeting to raise about $6 billion for the fund. Oaktree is majority owned by Brookfield, which owned approximately 64% of Oaktree as of Dec. 31, a staff memo said.
The council also committed up to $50 million to TCG Crossover Fund II, a fund that would invest in public and private biotechnology companies developing therapeutic products for serious diseases. The fund is managed by TCG Crossover, which is a partner to The Column Group, a biotechnology venture capital firm. The Column Group would find and provide due diligence services for investment opportunities.
Separately, the council approved asset allocations for all but one of its seven endowment pools The two largest, the $27.1 billion Land Grant Permanent Fund and $7.8 billion Severance Tax Permanent Fund, increased private equity and real return and lowered domestic fixed-income target allocations.
The Land Grand Permanent Fund increased its private equity and real return target allocations by two percentage points each to 15% and 12%, respectively. The council cut U.S. aggregate fixed income by four percentage points to 6%.
For the Severance Tax Permanent Fund, the council boosted private equity by five percentage points to 10% and real return by two percentage points to 12%. The council shaved off seven percentage points from U.S. aggregate fixed income to 5%.
