New Mexico State Investment Council, Santa Fe, N.M., at its Jan. 23 meeting committed a total of up to $460 million to three private asset funds.
Pension officials committed up to $350 million to Oak Hill Advisors' Senior Private Lending Fund, which will look to invest in middle market and larger private equity-backed companies. The council will be able to recycle the proceeds, reinvesting the income generated back into the fund. Council officials are seeking opportunities to keep capital invested given SIC's cash positive position, Tom Lofton, director of fixed income told the council. Private credit staff are "emphasizing structures that will allow it to take advantage of recycling," a staff report to the council said.
The council also committed up to $100 million to Kinderhook Capital Fund 8, a middle-market buyout fund managed by Kinderhook Industries and for its New Mexico private equity investments program; an up to $10 million commitment to Next Frontier Venture Fund IV, an early stage venture capital fund focusing on seed and series A companies in the Rocky Mountain region.
Separately, the council heard for the first time from its new State Investment Officer Jon Clark, who announced that the council's total assets including permanent, reserve and endowment funds as well as governmental clients was more than $50 billion for the first time as of Dec. 31. The total fund earned about a 5% return for the year, he said. Clark was hired in December, replacing Steve Moise, who retired.