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The State Investment Council (SIC) is writing off $27 million of a $55 million investment made in 2006 with a different firm, SIC spokesman Charles Wollman. Correra shared in $576,000 in fees paid out in the latest deal, with Northstar SIC Holding LLC.
“This is a $27 million write down,” Wollman said.
The SIC and the New Mexico Educational Retirement Board write off $90 million they had invested with Chicago-based Vanderbilt Financial Trust. A lawsuit Correra is involved in encompasses his shared $2 million in fees for helping to arrange that deal.[1]
In the latest deal, the SIC invested $55 million of a $90 million commitment in 2006 to Northstar SIC Holdings LLC. Northstar invested that money in two other projects, one a “high-risk, high-return” real estate development in Connecticut called Antares Investment Partners. This one later soured, Wollman explained.
A recent SIC report shows the market value of the agency’s SIC original $55 million investment is $12 million. Wollman said the SIC recovered $16 million of its original investment.
In order to get a greater return, the SIC invests money from the state’s four permanent funds. Leasing fees, taxes collected on the extraction of minerals in New Mexico and money from the national tobacco settlement, contribute to the permanent funds. The permanent funds are about 15 percent of the state’s annual budget and without them, each household in the state would pay an average of $800 more in taxes every year, according to the SIC’s website, the New Mexio Independent reported.[1]
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