Connecticut Retirement Plans and Trust Funds is considering renewing its Morgan Stanley Investment Management real assets separate account relationship with a $450m (€361.2m) commitment and investing $200m in I Squared Capital’s latest infrastructure debt fund.
The pension fund disclosed in a meeting document that it is considering extending its CT Real Assets Co-Investment Fund relationship with Morgan Stanley for another three years.
The non-core real assets separate account partnership, established in 2021, allows for annual investments of up to $125m in real estate and infrastructure/natural resources.
Connecticut Retirement’s commitment to the I Squared fund is expected to be placed into ISQ Global Infrastructure Credit Fund II, which aims to raise $1.5bn.
The fund primarily focuses on middle-market transactions valued between $250m and $1bn, requiring debt investments of $100m to $300m.
With a targeted net return of 9% to 11%, including a net cash yield of 8% to 10%, the fund aims to deliver attractive returns to investors.
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