New Mexico PERA budgets $45m for 'real assets'

The $10.5bn pension is building its infrastructure portfolio, and has not yet committed to a manager. The pension was looking at Alinda Infrastructure Partners, but ultimately declined to commit to the firm.

The New Mexico Public Employees’ Retirement Association is considering setting aside $45 million aside this year for a 'real assets' investment category, which includes infrastructure.

The pension, with $10.5 billion in assets, is also considering setting aside $100 million for investments in private equity and $50 million for real estate partnerships, according to pension documens.

New Mexico PERA has not yet made a commitment to private equity this year, according to Julian Baca, deputy investment director with the pension. Last year, the pension budgeted $120 million for private equity commitments.

The pension has also not yet committed to an infrastructure fund manager. PERA was looking at Alinda Infrastructure Partners, but the pension ultimately declined to commit to the firm.

“It was the comfort level of the board with the fund,” Baca said. “[The board] was accustomed to seeing funds with longer track records.”

The pension is considering two more infrastructure funds for commitments, but will likely only make one infrastructure commitment this year.

On the private equity front, the pension will target this year are buyouts, non-US funds, distressed investments and venture capital, Baca said.

The pension has a 5 percent target to private equity and an actual allocation of about 2 percent. For alternatives in general, the pension has a target of 15 percent and an actual allocation of 13 percent.