The New Mexico Educational Retirement Board has reportedly selected Stonepeak Infrastructure Partners to manage a $25 million separately managed account focused on infrastructure debt.
That total may increase based on the account’s future performance, IPE Real Estate reported. The account will target a net internal rate of return of 8-9 percent, with deals ranging between $5 million to $15 million, investing in power, water, communication, renewable energy and transportation for the pension plan.
Stonepeak and NMERB were not immediately available to comment further.
The Albuquerque, New Mexico-based state pension plan has previously tapped the New York-headquartered firm, which is focused on North American mid-market infrastructure financing, for its investments over the last several years.
The pension plan committed $50 million to the Stonepeak Infrastructure Fund II, vintage year 2015, according to its fourth-quarter portfolio review. That allocation showed a net IRR of 42.5 percent by the end of last year. NMERB also made a $40 million investment to Stonepeak Infrastructure Fund, which had a net return of 12.2 percent by 31 December.
NMERB private investment strategies include buyout, distressed, co-investments, secondaries, mezzanine, growth equity and venture capital. As of 31 March, the plan has $12.1 billion in assets under management, its latest quarterly report shows.
Founded in 2011, Stonepeak manages $7.3 billion of capital as of 31 December, according to its website.