State Investment Council OKs nearly $2 billion in commitments during June meeting

A “unique friend” of New Mexico is how Pat Gelsinger, the former Intel CEO, described himself to the New Mexico State Investment Council on Tuesday, tuning into the meeting from Japan as the newest member of Playground Global.

The venture capital firm, based in Palo Alto, California, secured an $85 million commitment from the SIC.

Playground was one of more than a dozen companies that secured commitments from the SIC at its June meeting. The agency approved more than $1.8 billion in total commitments.

“New Mexico has tremendous assets to be a hub for the future,” Gelsinger said at the meeting.

The money went to venture capital firms, national private equity firms and real assets.

The commitments to the venture capital firms, including Playground, added up to $245 million:

• $85 million to Playground Global, in separate commitments of $50 million, $25 million and $10 million.
• $50 million to Antler U.S. New Mexico, whose global firm is based in Singapore.
• $50 million to Menlo Park, California-based Khosla Ventures.
• $35 million to Palo Alto-based Data Collective, or DCVC.
• $25 million to San Francisco-based Root Ventures.

The council approved $525 in commitments to national private equity firms, most of which built upon past investments from the SIC:

• $200 million to New York-based Mercer.
• $100 million to Arlington Capital Partners, based in Washington, D.C.
• $100 million to New York-based Lead Edge Capital Management.
• $75 million to Greenoaks Capital Partners, based in San Francisco.
• $50 million to Palo Alto-based CRV.

But more than half of the commitments went to real assets, or tangible investments. The SIC approved more than $1 billion to four companies:

• $200 million to Mercer for its principal investments program.
• $250 million to Connecticut-based Sandbrook Capital for climate infrastructure, in separate commitments of $125 million and $125 million.
• $225 million to New York-based Nova Infrastructure Management for energy and infrastructure, in separate commitments of $150 million and $75 million.
• $150 million to New York-based Ember Infrastructure Management for energy transition and climate resilience sectors.

Finally, the SIC also sent $250 million to Fortress Investment Group, in separate commitments of $200 million and $50 million to an asset-based credit fund. The firm is co-headquartered in New York and Dallas.

The nearly $2 billion in commitments the SIC approved this month adds to just 3% of the total funds the state agency oversees. Current state assets under management total $63 billion, an SIC spokesperson said.

The Tuesday meeting also marked progress on new permanent funds the Legislature tasked the SIC with managing. The council approved asset allocation structures for the new Behavioral Health Trust Fund and the new Medicaid Trust Fund, which mark the state’s 13th and 14th funds.