California Public Employees Retirement System (CalPERS) has made three new infrastructure commitments worth $2bn (€1.84bn), according to the pension fund’s board meeting document.
The pension fund has placed $1.7bn into Global Infrastructure Partners V, a fund managed by the Global Infrastructure Partners (GIP).
CalPERS said the the capital to the GIP fund will be split evenly to be invested directly into the fund and the other half will be invested via a sidecar vehicle associated with the fund.
As previously reported, GIP is seeking to raise $25bn for the global infrastructure fund.
CalPERS also invested $300m in Harbert Gulf Pacific Power (HGGP), a joint venture with Harbert Management Company focused on North American power infrastructure investments.
The HGGP partnership, valued at $1.8bn as of the first of 2023, recorded a one-year total return of 6.2% and a return of 8.3% for five years.
CalPERS is proposing a simplification within its infrastructure portfolio. The plan involves merging the value-add and opportunistic asset classes into a single non-core category. This change is driven by an identified policy violation.
CalPERS’s current 27.01% allocation to value-add investments exceeds the pension fund’s overall limit of 25%. This was due to a recent preference for value-add strategies in infrastructure commitments, updated valuations of existing assets and capital withdrawals.
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