The New Mexico State Investment Council is investing $75m (€66.2m) in Angelo Gordon’s core-plus real estate strategy.
The sovereign wealth fund has committed to the manager’s fourth vehicle, the Core Plus Realty Fund IV.
Vince Smith, deputy investment officer, said Angelo Gordon was a “very strong manager” that had “done a good job” with the fund’s capital in the past.
“This was even the case when the real estate market went through some tough times during the great financial crisis in the last decade,” Smith said.
In a board meeting document for the sovereign wealth fund, The Townsend Group, the real estate consultant for New Mexico, said Angelo Gordon’s core-plus funds had historically been strong performers.
All three previous funds finished above their vintage median, with two funds reporting top-quartile performance.
Smith also cited Angelo Gordon’s network of local joint venture operating partners.
The manager has so far completed five deals in major US markets with the capital.
Major property types in the top 15 markets in the country are being targeted, with a very small percentage of the fund to be invested in Europe and Asia.
Angelo Gordon has raised $1.1bn for Fund IV, which has a $1.5bn hard cap.
This includes a co-investment from the manager of 3% of the fund’s total commitments up to $15m.
New Mexico has is currently reviewing its core open-ended fund managers.
The scheme’s current list of core managers includes PRISA, UBS Trumbull Property Fund, Jamestown Premiere Property Fund, Invesco Core Asia Real Estate Fund, Clarion Lion Industrial Trust, Heitman American Real Estate Trust and USAA Eagle Real Estate Fund.
New Mexico has approved a commitment to Invesco that has yet to be signed.