The New Mexico State Investment Council (SIC) has approved a $75m (€66.4m) co-investment commitment to Hull Street Energy Partners III, building on its $150m direct commitment to the fund from last August.
The sovereign wealth fund said the co-investment to Hull Street Energy’s latest North American power sector assets fund has been structured as a separate account.
Hull Street Energy will likely retain discretion over deployment of the co-investment capital, with New Mexico SIC having an opt-in/opt-out decision on most co-investments, the sovereign wealth fund told IPE Real Assets.
Any deals made under New Mexico SIC’s co-investment account will come with no fees or extra charges.
New Mexico SIC said it held off on investing the co-investment capital until now because, when it first committed to the fund last year, it had expected there would be only a few, but very large, co-investment opportunities.
Consultant Mercer Investment Consulting disclosed in a New Mexico SIC meeting document that Hull Street expects to close two co-investment opportunities by the end of 2025.
Hull Street has set a $1.5bn targeted capital raise and a $2bn hard cap for Partners III which targets sectors like renewables, solar and thermal natural gas.
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