New Mexico State Investment Council (SIC) has expanded its infrastructure portfolio with three new fund commitments worth $625m (€538m) in total.
The sovereign wealth fund said it has made a $150m commitment to Ember Infrastructure Management’s Ember Infrastructure Fund II, committed $225m to a Nova Infrastructure Management strategy and committed $250m to a Sandbrook Capital strategy.
The Ember fund targets mid-market transactions in North America. The fund, which aims for net internal rates of return in the mid-teens and a 2.0x equity multiple, is expected to make eight to ten deals, each valued between $50m and $100m.
New Mexico SIC’s commitment to Nova Infrastructure includes $150m for the manager’s Nova Infrastructure Fund II and a $75m commitment to a related co-investment vehicle.
Nova Infrastructure’s fund has a $1bn fundraising target, according to New Mexico SIC’s board meeting document. The North American fund will focus on lower mid-market deals with a value-add investment strategy across environmental services, transportation, energy/energy transition and digital sectors.
The pension fund committed $125m to the Sandbrook Climate Infrastructure Fund II fund, with an equal $125m going into a co-investment vehicle to invest alongside the fund.
The Sandbrook fund will invest in core-plus and value-add transactions in North America and Europe, targeting sectors like clean power generation, transmission and storage, energy use and efficiency and low-carbon supply chains and services.
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