NM Investment Council commits $725M to companies at April meeting, despite economic ‘volatility’

The New Mexico State Investment Council on Tuesday approved sending commitments of up to $725 million to five companies and funds, betting on returns from investments ranging from sports to retail. The investments are a drop in the bucket of the nearly $60 billion the council has in net-asset values.

As for the recent economic instability and swings in the stock market, the SIC doesn’t anticipate it will affect New Mexico’s bank account long term. New Mexico has a high amount of liquidity, good net capital and a solid investment plan, Chief Investment Officer Vince Smith said at the agency’s April meeting.

“I think we’re in pretty good shape in terms of weathering this volatility and some of the conflict and confusion that seems to be out there today,” Smith said.

The SIC trusted five firms, all headquartered out of state or out of the country, with up to $725 million in commitments this month.

Headquartered in London with $8.6 billion in assets under management, or AUM, iCON Infrastructure Partners got the largest commitment of up to $200 million from the SIC. The firm acquires infrastructure companies in Europe and North America.

The council also approved sending up to $150 million to Ares Credit Group for a sports, media and entertainment fund. The global alternative investment manager has $484 billion in AUM. Ares’ investment strategy focuses on investments in sports leagues, teams and industry-related companies as well as entertainment and media companies, according to the SIC.

Retail is the focus for the up to $150 million commitment the SIC sent to Asana Partners, a North Carolina-headquartered firm with $6.9 billion in AUM. The goal is to acquire street retail and neighborhood centers in high-growth, well-educated and high-income areas, according to the SIC.

“Asana seeks to build a dominant position in walkable neighborhoods where control of a portfolio of varied format spaces enables the development of a sense of place by repositioning properties and leasing them to a mix of local, regional and national retailers,” SIC staff summarized in their investment recommendation materials.

The SIC also approved a commitment of up to $150 million for Evolution Credit Partners, which is headquartered in Boston and has about $3.6 billion in AUM. The firm invests money via financing, specifically in “capital solutions,” offering personalized credit market strategies.

“As a result, our borrowers are willing to pay a premium for our solutions and this provides the alpha to our investors,” Evolution stated in its presentation pitch.

And the New York-based Brightstar Capital Partners received $50 million, along with a $25 million co-investment. The firm, which has $5 billion in AUM, typically focuses on middle-market buyout investments, particularly industrial and business services companies.