New Mexico Educational Retirement Board (NMERB) and Aberdeen Standard Investments (ASI) have announced they will work together to invest in small and medium sized companies in Europe.
The co-operation entails a three year $100 million private equity program that will have the objective of acquiring companies “where value is created through operating improvements, expanding the range of products and services offered and broadening the geographical focus of marketing and operations.”
Steve Neel, deputy chief investment officer, at NMERB said: “NMERB has been keen to allocate private capital to Europe for some time.
“We have conducted an extensive search to identify the most appropriate partner to help us source and select attractive European private equity investments.
“The choice of a like-minded partner is essential for the success of the program.
“ASI shares our strategic view on the European private equity market.
“We believe ASI’s long-term experience of managing dedicated separate accounts for some of the world’s largest pension funds makes them an ideal partner for NMERB.”
Stewart Hay, global head of private markets client strategies at Aberdeen Standard Investments, said: “NMERB were very clear on their chosen European strategy early on in their selection process.
“They were very focussed on investing in the smaller end of the European market where we see some of the most attractive opportunities.
“We are obviously delighted to have been selected by NMERB for this mandate after one of the most detailed due diligence exercises we have ever been through.
“We have enjoyed working with NMERB in developing this unique approach to the European private equity market.”