New Mexico Fund to Bolster Private Debt Commitments

The New Mexico State Investment Council (SIC) has allocated $625 million across six mandates as it continues to invest in private debt and private equity investment portfolios, including a separately managed account (SMA).

Silver Point Capital, a private debt-concentrated lending firm, has received a $250 million commitment for its Silver Point Distressed Opportunities Institutional Partners II, which intends to capitalize on slowing leveraged finance growth and the possibility of credit downgrades.

In 2018, the $47 billion SIC invested $100 million to the predecessor fund and another $150 million to Silver Point Specialty Credit Fund III, which lends to performing credits.

Meketa, a consulting firm, recommended the allocation, and its contract was expanded to include real estate debt investments. In 2022, the allocation of private debt markets featured only one real estate debt-oriented strategy for SIC.

The annual commitment target pacing for New Mexico’s private debt exposures has increased from $900 million in 2021 to a projected $1.5 billion to $2 billion through 2027.

The remainder of the allocations were focused on private equity. Altaris VI ($75 million), M13 Ventures IV ($50 million), New Mountain Partners VII ($100 million), and Mercer SMA ($150 million).