New Mexico State Investment Council (SIC) has started to make co-investments in infrastructure and real estate for the first time.
According to a board meeting document, the sovereign wealth fund has commited $50m (€44m) to be co-invested alongside BlackRock Global Energy & Power Infrastructure III.
A spokesperson for New Mexico SIC said: “We are looking to find additional co-investment opportunities in the future in both our real estate and real estate asset classes in the future.”
Subsequent commitments are expected to be of a similar size.
BlackRock will have discretion over the co-investment capital, although it will be restricted to a maximum of $10m per deal and will have to exclude North America midstream transactions.
New Mexico SIC committed $100m to BlackRock Global Energy & Power Infrastructure III in the fourth quarter of last year.
According to a board meeting document, BlackRock is seeking to raise $3.5bn for the fund, with a $4.5bn hard cap.
Last month, the manager had raised more than $3bn. A final closing is projected to occur in the next four to six months.
New Mexico SIC has also approved a $50m redemption for its $127.7m investment in the RMS Evergreen US Forestland Fund.
A spokesperson for New Mexico SIC said: “The fund has not performed up to expectations, and one of the factors was the housing market in the US did not bounce back as strongly as was projected.
“We still think that RMS Evergreen is a good manager.”