New Mexico SIC Deploys $544M Across European Buyouts, Private Credit

The $71 billion New Mexico State Investment Council (SIC) approved $544 million in new private equity and private debt commitments in March, reinforcing its push into buyouts and specialty credit as it works toward higher long-term allocations to private markets. 

Dutch manager Waterland Private Equity Investments received an additional €125 million (about $144.25 million) split between Waterland Private Equity Fund X and Waterland Partnership Fund II, following a €110 million allocation to prior vintages in 2022. The middle-market buyout firm targets Western and Northern Europe and sits in the buyout sleeve of SIC’s private equity portfolio. 

On the private debt side, trustees approved two upsized commitments. Ares Management’s Ares Pathfinder III secured $300 million, including a $50 million sleeve to a no-fee, no-carry co-investment structure, as a re-up to SIC’s flagship asset-based finance relationship. Pathfinder Fund II “has performed well in market cycles” and is delivering a 17.3% net IRR historically, according to SIC. 

SIC also approved a $100 million top-up to Pemberton Asset Management’s Pemberton Structured Credit Fund IV, a Europe-focused capital solutions strategy accessed via a co-investment SMA offered exclusively to the fund. The latest allocation adds to a $150 million commitment to Pemberton Strategic Credit Fund IV in August 2024, which is “currently tracking modeled returns of 14% net IRR,” bringing total exposure to the SCF IV strategy to $250 million. 

SIC reported a 13.24% investment return for the year ended January 31, with private equity currently just over 9% of assets versus a 15% target and private debt sitting within an 8% private markets bucket, also targeting 15% over time.