Teachers’ Retirement System of the State of Illinois is investing $150m (€136m) in infrastructure with Goldman Sachs Asset Management.

The US pension fund told IP Real Estate that the commitment to the West Street Infrastructure Partners Fund III marked the first time it had invested in the asset class with Goldman Sachs.

Illinois Teachers does not have a target allocation to infrastructure but rather invests opportunistically when it identifies compelling opportunities.

The latest investment will placed in its real-return portfolio, which is worth $4.2bn and makes up 9.2% of total assets, with a target allocation of 11%.

Goldman Sachs, which declined to comment, has invested in infrastructure since 2006, raising more than $10bn, including the $3.1bn secured for GS Infrastructure Partners II in 2010.

Separate media reports suggest Goldman Sachs is seeking to raise $3bn for a third global infrastructure fund.

Goldman Sachs, which has a global investment mandate for infrastructure across OECD countries, targets transportation and utilities.

The investment firm likes to invest in assets with strong competitive positions and high barriers to entry, favouring revenues that are contracted and/or linked to underlying economic growth and /inflation.