LPs

New Mexico pledges $50 mln to TPG impact investment fund

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New Mexico State Investment Council, pension fund, private equity
  • Rise Fund targeting $2 bln
  • Fund will be used to invest in environmentally and socially-friendly businesses
  • New Mexico also backs TPG Growth, New Mountain

New Mexico State Investment Council elected to commit $50 million to a new social-impact fund marketed by TPG’s growth equity platform, according to reports.

TPG’s Rise Fund, targeting $2 billion, will invest in businesses with tangible social and environmental goals in mind, a presentation included in New Mexico’s meeting materials shows. Potential investments could include stakes in businesses that build affordable housing or clean-energy infrastructure, for example, or education-sector companies whose products or services increase academic performance.

The fund is led by Bill McGlashan, Michael Stone, Stephen Ellis, Jerome Vascellaro and Maya Chorengel, according to the fund’s website.

In May, the firm invested $50 million in Dodla Dairy Ltd of Hyderabad, India. Dodla sells fresh dairy products across more than 50,000 retailers in south India, a news release says.

In addition to its commitment to TPG’s Rise Fund, New Mexico’s $21.9 billion sovereign-wealth fund also committed $50 million to TPG Growth Fund IV, which is reportedly targeting $3 billion.

TPG’s previous growth fund, a $3.1 billion 2015 vintage, was netting a 17 percent internal rate of return and 1.1x multiple through March 31, according to presentation materials. Fund II, a $2 billion 2011 vintage, was netting a 28 percent IRR and 2.1x multiple as of that date.

New Mexico also committed up to $75 million to New Mountain Capital’s new flagship fund, which is targeting $5 billion with a $5.85 billion hard cap. New Mountain’s fourth fund was netting a 23.8 percent IRR and 1.28x multiple through Dec. 31, Pennsylvania Public School Employees’ Retirement System documents show.

New Mexico valued its PE program at $1.77 billion as of April 30. The sovereign-wealth fund held 8.07 percent of its investments in private equity as of that date.

Action Item: For more on TPG’s Rise Fund: http://therisefund.com/

A long-exposure picture shows the trail of Mars as the brightest among stars as it crosses the night sky over Bolshoy (Big) Almaty lake at 2,600 meters above sea level in the mountains outside Almaty, Kazakhstan, on Aug. 27, 2003. Photo courtesy Reuters/Shamil Zhumatov.