New Mexico State Investment Council (SIC) is to redeem close to $100m (€87.7m) from Berkshire Group’s open-ended core multifamily fund due to the manager’s inability to raise new investment capital.
According to a meeting document, the sovereign wealth fund is redeeming $98.9m from Berkshire Multifamily Income Realty Fund, which had produced a 10.3% net internal rate.
New Mexico SIC made a $75m commitment into the Berkshire fund in 2015.
New Mexico SIC told IPE Real Assets that the Berkshire fund was started with an initial capital raise of $450m and when ”we committed there was an expectation they would raise $500m in new investment capital annually to get up to full scale. This has not occurred.”
The capital being redeemed could take at least three months.
The sovereign wealth fund has not made a decision as to how this capital will be re-invested.
New Mexico State said it has approved a $100m commitment into the Brookfield Infrastructure Fund IV fund, which is expected to raise as much as $17bn. The value-add fund is seeking investments in the Americas, Western Europe and the Asia Pacific.