Antin Infrastructure Partners is hoping to raise €3bn for its latest infrastructure fund.
The Public Employees Retirement Association of New Mexico confirmed that it has approved a €65m commitment to Antin Infrastructure Partners III.
New Mexico PERA said the new fund, which is expected to reach a first close in December, will target mid-market investments in Europe.
According to industry sources, it is rare for US public pension funds to make commitments to Europe-only infrastructure funds. Most favour US-only or global strategies.
Kristin Varela, portfolio manager of real assets for New Mexico PERA, said: “We think that this commitment will give us some strong diversification within our infrastructure portfolio.
“Most of our other managers have invested in large core assets. Antin has more of a value-add and mid-market kind of strategy.”
The $14.3bn (€12.9bn) pension fund has an infrastructure portfolio valued at $300m and a target allocation of 1%.
Uncertainty surrounding the UK’s anticipated withdrawal from the European Union has not dissuaded New Mexico PERA from investing in European infrastructure.
“We don’t believe that the Brexit situation will be impacting our interest in the fund and will still believe very strongly in the manager of the commingled fund,” said Varela.
According to New Mexico PERA, Antin plans to co-invest 1% of total commitments to the fund.
Antin, which is owned by its management and has offices in Paris, London and Luxembourg, declined to comment.
IPE Real Estate understands the fund is targeting gross returns of 15% by investing in existing value-add assets and brownfield developments.
It will target investments in the range of €100m to €400m.
The types of infrastructure will include energy/environment, telecommunications, transportation and social infrastructure. The fund does not hold any assets yet.
The 10-year fund follows on from two previous funds which finished capital raising in 2010 and 2014, respectively.
Antin recently sold a Spanish broadcasting and telecommunications company to AMP Capital.