New Mexico State Investment Council is investing $300m (€260m) in the Bell Partners Growth and Income Fund, a vehicle seeking to raise $1.5bn to invest in US apartments.

The sovereign wealth fund has confirmed that it is joining New York State Common Retirement Fund, Los Angeles County Employees Retirement Association, and another unnamed pension fund as an anchor investor in the fund.

The investment means Bell Partners is close to its fundraising target in a short time frame.

The fund aims to deliver at a net internal rate of return of at least 9%, using maximum portfolio leverage of 50%. It will be invested mostly in existing assets, with an allocation of up to 20% for value-add assets, including build-to-hold developments.

New Mexico SIC has also increased its existing $475m investment in the Lion Industrial Trust, committing a further $50m to the fund.

The open-ended fund invests in core-plus industrial assets and has a net asset value of $20.8bn, according to information provided by Clarion Partners to New Mexico SIC.

New Mexico SIC has also approved a $150m commitment to the ACORE Credit Partners III, a fund for which ACORE Capital is seeking to raise $2bn.

The fund invests in subordinate debt and transitional loans and New Mexico SIC is funding the investment from a real estate sleeve within its private debt portfolio. 

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