LPs

New Mexico ERB re-ups $40 mln with Ares

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  • Ares Special Situations IV targeting $1 bln with $1.5 bln hard cap
  • Fund will invest in “dislocated and out-of-favor assets”
  • New Mexico ERB increased PE commitment pacing to $300 mln in September

New Mexico ERB allocated $30 million to Ares Management’s previous special situations fund, a 2011 vintage that had generated a 15.86 percent internal rate of return as of June 30, according to New Mexico documents.

Ares set a $1 billion target and a $1.5 billion hard cap for its latest special situations vehicle. Fund IV will acquire “dislocated and out-of-favor assets” such as first- and second-lien bank loans, high yield bonds and other securities, according to New Mexico State Investment Council documents. The State Investment Council committed $75 million to the fund in May.

New Mexico ERB valued its private equity portfolio at $890 million as of Sept. 30, according to an investment report. The $11.2 billion retirement system had an 8 percent allocation to the asset class as of that date, less than its 11 percent target.

In September, the New Mexico Educational Retirement Board increased its annual commitment pacing from $175 million per year to $300 million per year.