Connecticut Retirement Plans and Trust Funds (CRPTF) is planning to create a non-core real assets separate account partnership with Morgan Stanley Investment Management and invest up to $125m (€105.6m) per year over a three-year period.

The pension fund said in a meeting document that for each year, it expects to commit $75m to real estate for the value-add and opportunistic co-investment partnership and $50m for infrastructure/natural resources.

Morgan Stanley is expected to contribute 2% of the total commitment, according to CRPTF.

CRPTF said the partnership, which targets a 12% net internal rate of return, is expected to give the pension fund the opportunity to co-invest with existing general partners that CRPTF has made fund commitments. It will also give the CRPTF exposure to new general partners within Morgan Stanley’s network.

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