New Mexico State Investment Council has become a limited partner in the Aermont Capital Real Estate Fund VI with a €150m commitment, the sovereign wealth fund said.
Aermont Capital is targeting a total capital raise of €5bn for the new fund. The manager has already reached first close on the fund with total commitments of €1.3bn, according New Mexico’s manager.
Aermont is planning to issue a co-investment into the fund of 3% of the fund or €150m, according to a board meeting document by the sovereign wealth fund. The targeted returns for the fund are net IRRs of 15% over an eight-year term.
Fund VI is a real estate opportunistic fund targeting direct asset, corporate, and real estate credit investments.
The fund will be focused on prime assets and transformational projects in leading cities in Western Europe such as London, Paris, Lisbon, Madrid, and Barcelona.
Targeted asset classes include data centres, student housing, logistics, hotels, cold storage, and residential.
Aermont is planning that Fund VI will have a total of 11 to 14 investments with each transaction varying from €250m to €450m each.
The commitment from New Mexico represents its first real estate commitment for the 2026 calendar year. Investment activity in the asset class has been slowed by the fact that Kristen Varela came on board as the new chief investment officer for the sovereign wealth fund in June of this year.
New Mexico has added to its infrastructure portfolio with a total commitment of $250m (€214.5m) into the Macquarie Infrastructure Partners VII.
The commitment was evenly split with $125m going directly into the fund and the same amount for the co-investment sidecar associated with the fund.
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