Bernalillo County Council Approves $1.07 Billion in New Investments

The New Mexico State Investment Council voted on Tuesday to approve $1.07 billion in new investments. The board allocated $120 million of that total to funds managed by the venture capital firm Lightspeed. This decision came despite objections from local activist groups who questioned the firm’s connections to the tech industry.

The council committed $100 million to Lightspeed’s AI Renaissance Fund. It also directed $20 million to a related co-investment vehicle. State Investment Officer Jon Clark told reporters that these specific funds are not linked to Elon Musk. Clark explained that the AI Renaissance Fund has not yet begun its investment period. The strategy for this fund focuses on buying out established companies in the service sector. The firm plans to streamline their operations using artificial intelligence.

Activist groups including Concerned Citizens for Nuclear Safety and Common Ground Rising opposed the move. They argued the investment would expand the state’s stake in firms owned by Musk. Lightspeed has invested in Musk’s companies, including xAI and Neuralink, according to the firm’s website. The council has previously invested in nine other Lightspeed funds. Those active investments currently total $160 million. Charles Wollman, a spokesperson for the council, wrote in an email that the council is contractually prohibited from sharing details about individual investors’ portfolios.

Opponents also pointed to Lightspeed’s backing of Castelion Corp. Castelion is building a 1,000-acre solid rocket motor manufacturing site in Sandoval County. Clark stated that many managers have multiple strategies and different funds that are separate from each other. He said there is no tie between the new Lightspeed investment and Castelion.

Elaine Cimino, the leader of Common Ground Rising, said the specifics of the commitment are not the main issue for her group. She stated that the problem is the firm itself. Isaac Kim, a Lightspeed partner, spoke at the Tuesday meeting. He said the fund has already raised more than $750 million. This amount exceeds its initial target. Lightspeed was founded in 2000. The firm manages more than $50 billion in assets. It was the largest investor in Anthropic’s $3.5 billion Series E financing round. The firm has also backed Anduril, Grubhub, and Snap Inc.

New Mexico’s sovereign wealth fund holds $75.8 billion in assets. The fund was worth less than $50 billion when Clark took the helm three years ago. The council has placed most incoming revenue in public equity and core bonds. These assets are liquid and simpler to invest in. However, the fund has lagged behind its goals for private market investments. Clark said private market investments require more vetting and longer negotiations.

The board also established a new relationship with Arcmont Asset Management. The council placed $150 million in the Arcmont Capital Solutions Fund III. This is a European private debt fund. Another $100 million went to the Advent Mid-Market Private Equity SCSP. This fund focuses on buyouts of European and North American firms in the consumer, healthcare, industrial, and business and financial services sectors. The council has made four previous commitments to Advent funds.

The council voted to re-up commitments to three existing funds. The state will invest $225 million in the Copenhagen Infrastructure Fund VI. This fund backs renewable energy development. The council will also invest $125 million in a related co-investment vehicle. It will invest $200 million in the EQT Exeter Industrial Value Fund VII. This fund focuses on logistics and light industry. The council will put $400 million into the FPA Blue Chip Secure Value Fund VII, which focuses on multifamily housing.

The sovereign wealth fund was established in 1958. It invests revenue from New Mexico’s taxes on oil and gas production. It also uses proceeds from leases and sales of public land and minerals. Some of the returns are distributed to support state services. These services include universities and early childhood education. The fund is expected to generate $2.3 billion in distributions in fiscal year 2027. Crude oil production is currently booming. Gas prices spiked during the war in Iran.

Clark said the fund’s projections indicate it will supply 37% of the state’s general fund revenue by 2050. He noted that this amount exceeds all corporate and personal income tax combined. It also exceeds all sales taxes.