New Mexico State Investment Council (SIC) has approved a $100m (€83.4m) commitment to Macquarie Infrastructure Partners V (MIP V), a North America infrastructure fund which has so far raised 80% of its $5bn fundraising target.
The sovereign wealth fund’s investment consultant, The Townsend Group, stated in a board meeting document that MIP V was selected due to the fund’s core/core-plus infrastructure investment strategy and the track record executed by an established infrastructure team that New Mexico has invested with previously.
According to fundraising sources, manager Macquarie Infrastructure & Real Assets secured $4bn during an interim closing in August. Macquarie’s predecessor fund, MIP IV, reached its hard cap of $5bn in January last year, exceeding its $3.5bn target.
MIP V will target investments that will be able to produce a net internal rate of returns in the range of 10% to 12%. Most of the capital for the fund will be invested in the US and Canada.
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