The New Mexico Educational Retirement Board is to make an additional $25m (€19.6m) commitment to Kildare European Partners I.
The pension fund also made a $125m investment in April of this year.
Mark Canavan, head of real assets at the pension fund, said New Mexico had concluded the manager of the fund was “best in class”.
European Partners I could have a total equity raise of as much as $2bn for opportunistic real estate, with a 13% potential IRR.
The vehicle will invest in individual and entity-level assets with operating companies in Western Europe.
New Mexico is also making a $25m commitment to Hammes Partners II, having approved an initial $25m commitment late last year.
The fund is investing in a variety of US healthcare-related properties, with a projected $300m total equity raise.
Hammes II is the first fund product offered by Hammes – all previous investments were invested on behalf of high net worth individuals, family office and publicly traded healthcare REITs on a deal-by-deal arrangement.
Capital for the two funds comes from New Mexico’s increased targeted allocation to real estate – up from 5% to 7% earlier this year.
The new allocation gives the fund $220m to invest in the asset class, Canavan said.
New Mexico Educational will also look to sell some limited partnership positions for funds in all of its asset classes, including real estate, for the first time.
