New Mexico State Investment Council (SIC) is investing in Global Infrastructure Partners’ (GIP) latest debt fund.
New Mexico SIC, which manages the US state’s $23bn (€20.4bn) permanent endowment, said in a meeting document that it will commit $100m to the GIP Spectrum Fund and provide a further $100m for co-investments for which GIP has full discretion.
GIP is seeking to raise $1.5bn for the fund and is targeting a return of 9% with a current cash yield of 5% to 7%.
IPE Real Assets understands that the fund had raised $1bn prior to New Mexico SIC’s commitment.
The fund will target energy, transportation and water/waste assets in North America with smaller exposures in Europe and Latin America.
New Mexico SIC said the fund will provide capital for infrastructure projects that might struggle to source funding from traditional lenders.