LPs

New Mexico PERA has $400 mln for private equity this year

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  • Investment plan calls for $400 mln for PE
  • $14.4 bln pension expects six to seven commitments
  • New Mexico was below its 7 pct PE target

The commitments will likely range between $30 million and $75 million in size. The plan, which the pension’s board approved at its Jan. 27 meeting, calls for investments in buyout, venture capital, distressed debt and non-U.S funds, according to the presentation.

Cliffwater’s pacing model expects a similar level of investment through the next several years, which would bring New Mexico PERA within 300 basis points of its 7 percent target allocation.

The $14.4 billion retirement association held a 4.4 percent allocation to the asset class as of Dec. 31. New Mexico PERA valued its portfolio at $647.6 million as of the same date. The portfolio includes commitments to The Carlyle Group, GTCR and Hellman & Friedman, among others. 

In addition to approving up to $400 million for private equity, the retirement system’s board also allocated $325 million to real asset funds and $200 million to real estate funds in 2015.