INVESTMENT IN NM PRIVATE EQUITY

SB 413 increases the portion of New Mexico’s severance tax permanent fund that can be invested in New Mexico private equity funds or businesses from 11% to 14%. It requires these investments to support the state’s economic development goals, with specific definitions for qualifying businesses (e.g., those with principal offices or majority employees in New Mexico) and private equity funds (e.g., those focusing on NM-based growth). The bill also allows targeted investments in aerospace businesses receiving federal awards or technology-focused ventures partnering with state universities. All investments must follow council-approved guidelines and require semiannual reporting to the legislature.