New Mexico SIC has doubled in size in the past 3.5 years, due to an accelerated inflow of oil royalties. At the end of 2025, it was the second largest SWF in the US, with US$ 70 billion in AuM, just behind Alaska PFC. We were delighted to speak with the State Investment Officer, Mr. Jon Clark, about the accelerated growth of the fund, the current strategy to put that capital to work, and the future outlook.

[GSWF] The SIC has doubled in size in the past 3.5 years to US$ 70 billion. How did this happen and what assets under management do you project by 2030?

[NMSIC] The SIC was established in 1958 with the goal of turning oil royalties into financial resilience. New Mexico has long been an energy state, and is the home of fracking, fission and fusion. In 2018, the production boom took off, and since 2022, there have been prices spikes that have grown the value of the oil & gas output by 70%. By 2030, we expect to become the US largest state fund with US$ 100 billion in AuM.

[GSWF] The SIC manages 14 different pools. Can you tell me more about the various funds you manage and their returns?

[NMSIC] We oversee three large funds (Land Grant Permanent Fund, Severance Tax Permanent Fund, and the Early Childhood Fund), plus 11 additional funds. We now provide funding for everything from free universal childcare, public education, higher education, as well as various workforce development programs. This year we are returning US$ 2.6 billion back to the state, and over the next decade we're projecting to return a total of US$ 38 billion, which compares to the US$ 10 billion annual state budget.

[GSWF] The SIC reduced its weight in alternatives in the past 3 years. Why did this happened and what is your projection?

[NMSIC] It was not intentional, but a denominator effect given the remarkable inflows we had. In the past three years, we received over US$ 20 billion in inflows during a three-year period and it takes time to put such capital to work. In addition, our private equity and real estate portfolios are mature, so getting the private markets weight back to 50% has been challenging, but remains our goal.

[GSWF] Can you shed a light on the fund’s venture capital program and the requirements for the applicants?

[NMSIC] Over the past three years, the SIC has invested US$ 1.8 billion into top tier venture capital firms with an interest in expanding to New Mexico, and any venture capital firm doing business in the state has a chance to qualify. We stress a double bottom line, with good returns and economic development. Recent success stories include firms like Pacific Fusion, XGS Energy, and Castillion that have resulted in an estimated US$ 2.7 billion in economic impact just from projects announced last year.

[GSWF] In the past decade, the SIC returned 7.4% p.a. Did the fund beat its benchmark and what is the target return?

[NMSIC] We did beat our benchmark, and we only have two funds that have official return targets: the Land Grant Permanent Fund has a return target of 7%, and Severance Tax Permanent Fund of 6.75% over a full market cycle.

[GSWF] The SIC has become an active investor in climate fund managers. What are your goals around sustainability?

[NMSIC] We created a new position in our office, the Head of Strategic Climate Initiatives, to be headed by Bruce Brown. Advanced energy is a key sector for New Mexico and the state really sees its path forward in clean energy and climate mitigation. Our goal is to make New Mexico the place to be for the fusion industry, with a workforce that aligns with the R&D that is needed.

[GSWF] How many staff do you have now and is there any team/department you are still expanding?

[NMSIC] We currently have 35 staff members, up from 22 just two years ago - and we're targeting a headcount of 62 staff by 2029. The SIC is chaired by the governor of the state and it also includes the state treasurer and the commissioner of public lands. All our staff works out of New Mexico and we are not planning to open any other office, although that could change down the road.

[GSWF] Personally, you have been at the helm of SIC for two years now. How do you compare it with your previous career in government, and what are your goals for the next five years at the fund?

[NMSIC] I have a background in economic development, and I see this as an economic development tool for New Mexico. We want to continue to be good stewards of New Mexico's money and  a national leader in support programs and industries such as advanced energy.