Newmarket infrastructure fund gets $150m commitment from New Mexico SIC
Investors - SEPTEMBER 1, 2023

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Newmarket infrastructure fund gets $150m commitment from New Mexico SIC

by Lewis Dayton

The New Mexico State Investment Council (SIC) has committed $150 million to Newmarket International Infrastructure Finance Company IV (IIFC IV).

Managed by Philadelphia-based Newmarket Investment Management, IIFC IV will invest in significant risk transfer (SRT) agreements with banks, centered around loans backed by seasoned infrastructure projects. Per regulations, banks must set aside capital against loans, and SRTs allow investors such as Newmarket to provide loss insurance on various pools of loans for banks, freeing up the bank’s capital so that it may engage more extensively in other areas of lending.

IIFC IV, with a target fundraising goal of $1 billion, will build off Newmarket’s history of more than $40 billion in SRT deals. The firm says that the current challenging bank economic environment provides an opportune time to invest in SRT agreements, as regulations have tightened, interest rates have soared and inflation has risen in many countries, factors w

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