New Mexico State Investment Council (SIC) has made a $150m (€170m) commitment to Oaktree Capital Management’s latest opportunistic real estate fund.
New Mexico SIC said it has placed the capital into Oaktree Real Estate Opportunities Fund IX, a fund seeking to raise $6bn. Oaktree raised $4.7bn for Oaktree Real Estate Opportunities Fund VIII and related vehicles at close in March 2021.
The latest fund is expected to deploy capital by acquiring distressed debt or discounted securities, providing rescue capital or by participating in equity recapitalisations.
Fund IX will be looking for deals involving a variety of property types in the US where it can produce a net internal rate of return in the mid to upper teens.
New Mexico SIC’s investment represents the sovereign wealth fund’s first-ever real estate commitment with Oaktree. New Mexico SIC previously invested with Oaktree through the manager’s credit funds.
Oaktree Capital declined a request for comment.
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