NM Pension Has Busy Summer, Will Spend In 2011

The New Mexico Public Employees Retirement Association may spend $100 million to $150 million in 2011 on private equity commitments, said Chief Investment Officer Joelle Mevi, on its climb toward its 5 percent target allocation. Cliffwater, the pension’s alternative asset consultant, will likely recommend that range, she said.

The pension fund has had a busy summer, pledging more than $100 million to four private equity funds, displaying an interest in energy, technology, venture capital and European buyouts, as it approaches the half-way mark on its climb toward its target private equity allocation. The actual amount invested stands at 2.4 percent. The private real asset target allocation is 2.3 percent, with an actual invested amount of 0.64 percent.

In late August, the pension fund approved a $25 million commitment to EnCap Energy Capital Fund VIII, which launched earlier this year and is seeking $2.5 billion, earmarked for upstream oil and gas investments, Mevi said. The pledge will go into the pension fund’s real assets bucket.

In July, New Mexico committed $20 million to another energy vehicle, EnerVest Energy Institutional Fund XII, which invests in upstream oil and gas properties and has a target of $1.5 billion. Also in July, the tech-focused buyout and growth equity firm JMI Equity Partners got a pledge from the pension fund of $20 million for its JMI VII, which has a target of $800 million.

Netherlands-based Gilde Buy Out Partners received a slug of $18.6 million for its fourth fund, earmarked for mid-market deals in Western Europe. Gilde Buy-Out Fund IV closed on June 30 with €800 million ($1 billion).

And in the venture capital bucket, Institutional Venture Partners XIII LP got a pledge of $20 million for later-stage venture capital and growth equity investments. The firm is seeking $600 million for the fund.