New Mexico commits to Rockwood

The $12 billion pension system has agreed to contribute $35 million to Rockwood Capital Real Estate Partners IX.

The New Mexico Public Employees’ Retirement Association (PERA) has contributed to Rockwood Capital’s latest value-added real estate fund. According to PERA documents, the $12 billion state pension system has approved a commitment of $35 million to Rockwood Capital Real Estate Partners IX, which is targeting $750 million in equity with a hard cap of $1 billion. 

Launched earlier this year, Fund IX primarily will target hotels, offices and residential and retail properties throughout the US that have steady income streams and the potential for redevelopment. Rockwood is focusing on California and the Boston-to-Washington corridor for its investments and also may make purchases in Arizona and Florida on behalf of the fund. 

New Mexico PERA had approved a $70 million increase in its allocation to real estate in January, as well as $85 million for real assets. So far, the system has $35 million left for real estate commitments this year, though the system may not spend the total amount. 

Spending the entire budget for an asset class depends on the state of the market, according to New Mexico PERA’s chief investment officer, Joelle Mevi. The system doesn’t always use its full budget. 

“We’re not in any hurry to deploy funds if we don’t find compelling investment strategies,” Mevi told sister publication Private Equity International. “Not committing the entire annual budget isn’t unusual for [the system] with regard to private partnerships. The investment environment in any given vintage year is a determining factor.”

Separately, it was revealed in April that the $11.6 billion Arkansas Teacher Retirement System agreed to invest $30 million in Rockwood’s Fund IX. Representatives from Rockwood declined to comment.

Additional reporting by James Comtois