New Mexico plan places $270m in latest round of alts funding

In late June, trustees for the New Mexico State Investment Council approved four alternative investment allocations, including an allocation to the fund’s first venture capital commitment to its national private equity portfolio in more than a decade. Menlo Ventures XV received a $30 million commitment from the $27 billion system. The firm has backed successful start-ups such as Warby Parker and Uber. According to spokesman Charles Wollmann, the council overseeing the state employees’ pension assets has been very focused on leveraged buyout and growth equity funds. He added that while the New Mexico-focused and regional private equity program does have a lot of venture capital due to the differing opportunity set. Historically venture capital has presented challenges to large institutional investors due to sizing of investments. A second allocation of $40 million was made to Bridgepoint Development Capital IV, a fourth growth capital offering from the U.K.-based firm. Mercer advised on the investment as well as the Menlo Ventures allocation. Meanwhile, two private credit funds -- Oaktree Opportunities Fund XI and Silver Point Specialty Credit Fund II -- were added winning mandates of $100 million each upon the recommendation of Aksia. Both funds have been under review over the past month. The Oaktree Capital fund is thought to be the largest distressed debt fund ever to be raised in totaling $15 billion. Distressed debt’s popularity began to rise as market challenges emerged due to COVID-19. In the case of Silver Point, the firm launched its second specialty credit fund in 2019 and has reportedly raised assets from other public pension funds systems as well.

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