The New Mexico Public Employees’ Retirement Association is considering committing $20 million to JMI Equity, a private equity firm focused on software, internet, health care IT and business services companies.
The $10.5 billion pension’s investment committee is recommending the $20 million commitment to JMI Equity Fund VII, which began raising funds last month, according to a Securities and Exchange Commission filing. Based on information in the document, the firm has yet to hold a close on the vehicle and did not disclose a target amount. JMI’s previous fund, JMI Equity Fund VI, closed on $600 million in July of 2007.
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.
JMI, which provides capital for growth, recapitalisations, acquisitions and buyouts, has $1.3 billion of committed capital under management, with investments ranging between $10 million and $60 million.
Recent deals for the firm include a joint sale with Hellman & Friedman of the technology and information solutions company Vertafore to TPG for $1.4 billion, which took place earlier this month. Also in July, a group including Hellman, JMI and TPG sold Intergraph, a maker of engineering and geospatial software, for $2.1 billion to Swedish technology company Hexagon. A source close to the deal said the return for the private equity firms as a whole would equate to a multiple of more than four times the investment.
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.