Global Infrastructure Partners has launched its first infrastructure debt fund and secured financial backing from Oregon Public Employees Retirement Fund.
The company is seeking to raise $2.5bn (€1.87bn) for its Capital Solutions Fund and Oregon PERF has approved a $200m commitment, according to pension fund documents.
Global Infrastructure Partners, which will be making a 1% co-investment, is aiming to make a first close next month, the document said.
The fund will invest in a range of infrastructure industries, including energy, transportation, water and waste. It will be open to greenfield and brownfield development.
It will focus on the OECD regions of North America, Europe and Australasia, although 10% can be allocated to non-OECD countries.
It will look to span the capital structure, including secured, unsecured, subordinated and convertible debt, and preferred equity, and hold 20 to 25 investments, ranging in size from $50m to $250m.
Oregon PERF is investing in the fund as part of its $2.4bn alternatives portfolio. It has so far made $950m in infrastructure commitments. It committed $150m to one of Global Infrastructure Partners’ global diversified infrastructure funds in 2011.
The Global Infrastructure Partners fund is targeting a net IRR of 9% to 11%, including a cash yield of 5% to 7%, well above Oregon PERF’s alternatives performance objective of 400bps above CPI.
Global Infrastructure Partners declined to comment.