New Mexico State Investment Council Approves $1.07 Billion Portfolio

The New Mexico State Investment Council approved $1.07 billion in new investments on Tuesday. The vote included $120 million for funds managed by the venture capital firm Lightspeed, a decision that drew objections from local activist groups.

The council committed $100 million to Lightspeed's AI Renaissance Fund and another $20 million to a related co-investment vehicle. Activists, including Concerned Citizens for Nuclear Safety and Common Ground Rising, opposed the move because other Lightspeed funds have invested in companies owned by Elon Musk. They also cited the firm's backing of Castelion Corp., a defense startup building a large manufacturing site in Sandoval County. State Investment Officer Jon Clark said the new funds are separate from those previous investments. "There is no tie whatsoever between this Lightspeed investment and Castelion," Clark stated.

Elaine Cimino, who leads Common Ground Rising, argued that the specific fund structure was less important than the firm itself. "The problem is Lightspeed," she said. The new AI Renaissance Fund has not yet begun investing. Its strategy involves buying established service sector companies and using artificial intelligence to streamline their operations. Lightspeed is a large firm that manages more than $50 billion in assets. It has previously backed companies such as Anthropic, Anduril, and Snap Inc.

The council also allocated funds to other private market opportunities to meet its portfolio targets. It placed $150 million in the Arcmont Capital Solutions Fund III, a European private debt fund. Another $100 million went to the Advent Mid-Market Private Equity SCSP, which focuses on buyouts in Europe and North America. The council also voted to renew commitments to three existing funds. These include $225 million in a Copenhagen infrastructure fund, $200 million in an EQT industrial value fund, and $400 million in an FPA multifamily housing fund.

New Mexico's sovereign wealth fund is currently worth $75.8 billion. State Investment Officer Jon Clark took control of the fund three years ago when it held less than $50 billion in assets. The fund invests revenue from oil and gas taxes, as well as leases and sales of public land. Returns from the fund support state services like universities and early childhood education. Clark said the fund is expected to generate $2.3 billion in distributions for fiscal year 2027. He projected that by 2050, the fund will supply 37% of the state's general fund revenue. This amount would exceed all corporate and personal income taxes combined, as well as all sales taxes.