Investors - AUGUST 19, 2014

New Mexico commits $50m to infrastructure

by Reg Clodfelter

The $11.3 billion New Mexico Educational Retirement Board has committed $50 million to ISQ Global Infrastructure, managed by I Squared Capital.

“We have known Sadek and his team for several years,” says Mark Canavan, senior investment officer with NMERB, referencing Sadek Wahba, who founded ISQ in 2012 along with other ex-Morgan Stanley executives Gautam Bhandari and Adil Rahmathulla. “I interviewed and began investigating a potential investment with the group when they were with Morgan Stanley.

“Circumstances did not allow us to go forward at the time, but I was impressed with their personalities and how they translate into a conservative and well-thought-out investment process,” Canavan continues. “We are excited to be able to invest with the team as an independently owned and operated investment platform.”

The fund launched in July and is reportedly seeking $2 billion to invest in transportation, utilities and water infrastructure across the globe with a focus on North America and Western Europe. The fund is seeking stable returns and moderate risk and, according to a press release from Mitsubishi Corp., has already invested in a cogeneration plant near Boston and a district cooling plant in Cincinnati. Mitsubishi Corp. committed $100 million to the fund in July.

NMERB has a 3.5 percent target allocation to its infrastructure bucket. The commitment to ISQ brings the actual allocation to 100 percent on a committed basis, though it is only 30 percent on an invested basis.

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