New Mexico State Investment Council (SIC) is to redeem close to $100m (鈧�87.7m) from Berkshire Group鈥檚 open-ended core multifamily fund due to the manager鈥檚 inability to raise new investment capital.
According to a meeting document, the sovereign wealth fund is redeeming $98.9m from Berkshire Multifamily Income Realty Fund, which had produced a 10.3% net internal rate.
New Mexico SIC made a $75m commitment into the Berkshire fund in 2015.
New Mexico SIC told 91传媒在线 that the Berkshire fund was started with an initial capital raise of $450m and when 鈥漺e committed there was an expectation they would raise $500m in new investment capital annually to get up to full scale. This has not occurred.鈥�
The capital being redeemed could take at least three months.
The sovereign wealth fund has not made a decision as to how this capital will be re-invested.
New Mexico State said it has approved a $100m commitment into the Brookfield Infrastructure Fund IV fund, which is expected to raise as much as $17bn. The value-add fund is seeking investments in the Americas, Western Europe and the Asia Pacific.
