Maine Public Employees Retirement System is investing in new funds targeting US real estate and European infrastructure.
The US pension fund told IPE Real Estate it had committed $50m (€45m) to KKR Real Estate Partners Americas II.
Maine PERS is understood to be one of the first investors in the fund, a successor to the $1.5bn US real estate vehicle launched in 2013.
KKR is targeting $2bn of capital for the new fund, according to sources tracking US fundraising.
The fund manager declined to comment.
The opportunity fund is free to invest across property types and markets. It will focus mainly on the US, but can invest up to 25% of its capital outside North America.
It has already bought an office building in Honolulu, Hawaii, which it is converting into a hotel.
KKR will be co-investing $200m in the fund, using approximately 70% leverage and targeting gross returns of between 16% and 20%.
Maine PERS made a $50m commitment to KKR Real Estate Partners Europe last October. KKR had raised $620m for the fund at the end of 2015. A final close is expected this year.
The pension fund said it had also committed $100m to Meridiam Infrastructure European Fund III.
Meridiam did not comment.