Public Employees Retirement System (PERA) of New Mexico has approved a $400m (€367.7m) multi-year commitment to the Stonepeak Core Fund, according to the pension fund’s meeting document.
For the current fiscal year, New Mexico PERA will allocate $100m directly to the Stonepeak fund and an additional $100m to a co-investment vehicle, which will invest alongside the fund.
The pension fund expects to increase its capital commitment by $50m each year in 2025 and 2026, for both the core fund and the co-investment vehicle.
The fund, which employs an open-ended investment structure, has an initial capital-raising target of $5bn, according to people familiar with the fund. The fund aims to generate gross returns between 8% and 11%.
Stonepeak declined a request for comment.
New Mexico PERA has also made a $100m commitment to the KKR Diversified Core Infrastructure Fund.
New Mexico PERA is also rebalancing its real estate portfolio by transferring $50m from the IDR secondaries portfolio to the IDR Core Property Index Fund, which tracks the NCREIF Open-end Diversified Core Equity index.
The secondaries portfolio was previously invested in four open-ended core real estate funds: CBRE US Core Partners, Heitman America Real Estate Trust, Prime Property Fund and Smart Market Fund.
New Mexico PERA has committed $250m to the Cerberus Global Residential Multi-Strategy Fund, becoming the fund’s first anchor investor.
The Cerberus fund will invest in residential real estate-related assets throughout the capital structure. Its primary investment strategies include whole loan acquisition or origination followed by securitisation, and investments in single-family rental properties.
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