The State Investment Council has been investing in private equity funds since 1989, and currently has over $1.5 billion in assets and an allocation target of 12% for this strategy. LP Capitol Advisors consults the Council regarding its private equity portfolio and performs due diligence on prospective fund investments. Private equity commitments are also vetted during public meetings of the Private Equity Investment Advisory Committee, followed by a vote of the full Council. The Council currently has exposure to hundreds of private companies, through dozens of managers and more than 100 limited partnerships.
The State Investment Council may also invest in New Mexico-based private equity funds, and is statutorily authorized to commit up to 9% of the Severance Tax Permanent Fund to this strategy. By statute the Council is allowed to consider economic benefits to the state in addition to potential financial returns when considering a fund commitment. The Council has focused primarily on fund capable of creating market-rate returns for the last decade, which has resulted in much improved investment performance. Sun Mountain Capital is currently the advisor for the NM program, and also serves as general partner for the SIC’s co-investment fund which invests in top early-stage New Mexico companies.