New Mexico considers $20m to EnerVest

Enervest’s 12th fund will reportedly raise up to $1.5bn to invest in upstream oil and gas assets in North America.

The $10.6 billion New Mexico Public Employees’ Retirement Association is considering committing $20 million to EnerVest Energy Institutional Fund XII.

A market source said the firm plans to raise $1.5 billion for its latest private equity vehicle, having raised just north of $1 billion from 75 limited partners for its predecessor in 2007.
Fund XII will invest in upstream oil and gas properties and companies in North America. 

It is the second energy-focused investment decision for the US pension since August, when the board approved a $25 million commitment to oil and gas-focused EnCap Investments’ Energy Capital Fund VIII.

New Mexico’s investment committee also recently approved a $20 million commitment to JMI Equity Fund VII, which began raising funds in June, according to a Securities and Exchange Commission filing. JMI’s seventh fund received a $10 million commitment from the Pennsylvania State Employees’ Retirement System this month.

JMI’s previous fund, JMI Equity Fund VI, closed on $600 million in July of 2007.

New Mexico PERA has set aside $100 million for private equity investments this year. The pension has a 5 percent target to private equity and an actual allocation of approximately 2.3 percent.

So far in 2010, the New Mexico PERA Board has approved a $20 million commitment to Draper Fisher Jurvetson’s Fund X, which is targeting $400 million for venture investments, as well as a $20 million commitment to HIG Bayside’s Loan Opportunity Fund II, a distressed debt investment vehicle. It is not clear how much HIG is targeting for the fund.