New Mexico State Investment Council (SIC) has approved a $150m (€137.7m) commitment to Newmarket Investment Management’s latest global infrastructure finance fund.
The sovereign wealth fund said it placed the capital into Newmarket International Infrastructure Finance Company IV.
Newmarket is seeking to raise $1bn for Company IV, a fund that provides credit protection for diverse portfolios of loans backed primarily by infrastructure projects.
Company IV is expected to invest in infrastructure assets like utilities and airports with around 90% of the fund’s transactions expected to be in OECD countries.
According to New Mexico SIC, Company IV expects to generate a net internal rate of return of between 9% to 12%.
New Mexico SIC made its investment via the diversifying strategies section of its private debt markets portfolio.
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