New Mexico State Investment Council (SIC) intends to extend its contract with consultant Meketa Investment Group to include real estate debt investments, as part of a plan to increase its private debt commitments.

According to a meeting document, the sovereign wealth fund plans to increase its private debt investments from $900m (€852m) in 2021 to between $1.5bn and $2bn annually by 2027, with the majority of these investments being placed in real estate.

New Mexico SIC’s current contract with Meketa, which was signed in August  2022, is focused primarily on private credit corporate and asset-based debt market strategies.

One reason for New Mexico SIC planning to move resources into real estate debt investment strategies is that an upcoming real estate portfolio structure study is expected to shift three to four real estate debt strategies to the sovereign wealth fund’s fixed income portfolio.

New Mexico also believes that real estate debt strategies offer diversifying exposures because private debt market commitments to corporate lending and asset-based investment strategies have grown.

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