Icon Infrastructure Partners expects to hold a first and final close of its latest $4bn (€3.5bn) fund within the next few weeks, according to a statement made by the manager in a board meeting for the New Mexico State Investment Council (SIC).
New Mexico SIC disclosed in the meeting document that it has approved a $200m commitment to the Icon Infrastructure Partners VII fund. The investment doubles the sovereign wealth fund’s $100m allocation to iCon VI, the previous fund in the series.
Fund VII targets low double-digit net internal rates of return and a gross equity multiple of 2.0 over an expected six- to ten-year investment horizon. The fund will invest in Europe or North America middle-market infrastructure assets with core and core-plus characteristics.
The fund is expected to make a total of 15 investments across the renewables, transport, energy transition and waste sectors.
New Mexico SIC also disclosed a $150m commitment to Asana Partners Fund IV. The Asana Partners-managed fund has a fundraising target and hard cap of $1.5bn and will solely invest in US street retail and neighbourhood shopping centres. The fund targets net internal rate of return of 11% to 14% over an expected eight-year lifespan.
New Mexico’s long-term strategy involves maintaining an underweight allocation to retail assets. The sovereign wealth fund however disclosed in the meeting document that it believes prudent diversification necessitates some exposure through top-performing managers.
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