New Mexico State Investment Council (SIC) has approved a $500m commitment to a Partners Group infratructure strategy that targets assets in OECD countries, with a particular focus on Europe and North America.
The sovereign wealth fund said it has invested $350m into the Partners Group Direct Infrastructure IV and placed $150m into a co-investment side car associated with the fund.
Partners Group is seeking to raise $7bn for the fund, consultant Mercer disclosed in a meeting document for the New Mexico SIC. The value-add fund is expected to target investments that can produce net internal rate of returns of 13% to 15%.
New Mexico SIC also disclosed in the meeting documents that it has created an investment programme to fund infrastructure assets within its home state.
The programme has made an initial $100m allocation to the Tierra Adentro Fund, which will be managed by J2 Infrastructure Partners. The fund’s strategy will include providing either growth capital or debt, and New Mexico SIC will have veto rights on all transactions. The fund is expected to invest in the telecommunications, data centre, energy and quantum asset sectors.
New Mexico SIC also approved $150m to an ArrowMark Partners US real estate debt strategy.
The investment includes a $100m commitment to the ArrowMark Commercial Real Estate Structured Finance Fund II and a $50m commitmnt to a fund of one between the New Mexico SIC and ArrowMark which will invest in commercial real estate B-Notes.
Structured Finance Fund II is targeting $500m in capital, with the ability to raise up to $600m to invest in structured investments, including first mortgages and structured preferred equity.
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