Public Employees Retirement Association of New Mexico (PERA) has signed off $250m (€230m) of investments in core infrastructure and real estate funds managed by ITE Management, KKR and Carlyle, according to a board meeting document.
The pension fund has committed $100m to the ITE Diversified Transportation Asset Fund, which invests in transport sectors in North America, including railcars, intermodal freight, aviation, airport facilities and barges.
The open-ended core infrastructure fund is targeting an overall time-weighted net return of 8% to 10% per annum over its life, including a targeted net annual cash yield of 5% to 6%.
New Mexico PERA has also committed $100m to the KKR Diversified Core Infrastructure Fund, which will invest in utilities, telecommunications, transport and energy-transition assets in Western Europe, North America and Australia.
Another $50m has been allocated to Carlyle Property Investors, an open-ended core-plus real estate fund.
The investment is part of its a series of commitments planned for 2024 to diversify New Mexico PERA’s real estate portfolio, increasing its exposure to alternative property types.
Carlyle Property Investors focuses on alternative real estate such as manufactured housing, single-family rental, medical office and active adult communities.
The fund, which owns more than 200 assets, has no exposure to office or hotels.
Carlyle has set a target net internal rate of return of 8% to 10% per annum over the life of the fund. It has a historical net annual cash yield distribution of 2.5% to 4%.
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