The New Mexico Public Employees’ Retirement Association is considering committing $25 million to EnCap Investments, an oil and gas-focused private equity firm based in Louisiana.
The $10.6 billion pension’s investment committee is recommending the $25 million commitment to EnCap Energy Capital Fund VIII, which is targeting $2.5 billion. EnCap Energy Capital Fund VII closed on $2.5 billion in December of 2007. The firm’s most recent fund, EnCap Energy Infrastructure Fund, closed on $791 million in March.
In June, the Minnesota State Board of Investment committed $100 million to EnCap’s eighth fund.
So far in 2010, the New Mexico PERA Board has approved $20 million commitments to JMI Equity’s Fund VI, Draper Jurvetson’s Fund X and HIG Bayside’s Loan Opportunity Fund II, a distressed debt vehicle.
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.
EnCap, which has raised 14 institutional oil and gas investment funds, has concentrated its previous seven Energy Capital Funds on providing growth capital to small and mid-sized companies. It has invested approximately $4.5 billion in 170 different companies.