New Mexico Educational Retirement Board is considering divesting an infrastructure fund stake from its portfolio, Secondaries Investor has learned.
The $11.3 billion pension is considering a secondary sale among other options, a source familiar with the matter said. In the event of a sale, New Mexico would be likely to use a broker, but will work with its infrastructure consultant Caledon Capital Management.
At its October board meeting, the New Mexico investment staff asked the board for authority to sell the fund stake, according to pennon documents. Authority was granted and the sale would mark New Mexico’s first-ever on the secondary market.
New Mexico declined to comment.
New Mexico’s infrastructure portfolio was established in 2008 and was valued at $330.2 million, including $189.5 million of unfunded commitments, as of 30 June, according to its website.
The portfolio consists of six fund investments and one direct investment fund.
Citi Infrastructure Partners
Alinda Infrastructure Fund II
Alterna Core Capital Assets Fund
Stonepeak Infrastructure Fund
EQT Infrastructure Partners II²
Altering Core Capital Assets Fund II
Caledon Andromeda Investments[/fourcol_two] [fourcol_one]Commitment
$85,000,000[/fourcol_one] [fourcol_one_last]net IRR
About 63 percent of the fund investments focus on the US, followed by 23 percent focused on infrastructure in Western Europe. Energy investments make up more than one-third of the portfolio.
The entire portfolio is generating a net internal rate of return of 2.5 percent as of June.