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LP Scorecard: Growth equity leads strategies for NMERB ‘13

New Mexico Educational Retirement Board committed more than $474 million across 10 PE funds in 2013. The commitment size and number of PE funds were both second most on the system’s record.

NMERB received $179 million in capital distribution from the 10 funds, which included one buyout, one co-investment, two distressed, two growth equity, two mezzanine, one secondaries and one venture capital.

All told, NMERB contributed more than $404 million to its 2013 investments as of Sept. 30, 2018.

The 10 investments produced a median IRR of 13.9 percent.

Growth equity has been the most beneficial investment type for the pension’s 2013 investments. It leads in capital distribution with $50.7 million.

Audax leads the two growth equity funds. Its fourth fund distributed $34.5 million in capital, the highest by any one fund. It received $39.1 million of its $40 million commitment. It has the second highest IRR at 17.5 percent.

Pine Brook’s sophomore growth equity fund received $48.5 million of its $50 million commitment. It distributed $16.2 million back to NMERB and produced an IRR of 11.6 percent.

Co-investment received NMERB’s largest single commitment at $100 million. BR/ERB Co-Investment Fund II received $85.3 million of that commitment and distributed $26.2 million for an IRR of 13.9 percent.

NMERB’s commitment to Apollo’s eighth flagship was its sole buyout fund investment in 2013. Apollo received $40.3 million of its $50 million commitment and distributed $13.1 million. The fund produced an IRR of 14.4 percent.

All told, numbers for NMERB go back to 2006. Since then, NMERB has received $1.7 billion in capital distribution from $3.4 billion in commitments across all PE funds.