Connecticut Retirement Plans and Trust Funds is planning $500m (€431.6m) worth of new infrastructure and real estate commitments.
The pension fund disclosed in a board meeting document that it is considering commitments to I Squared Capital strategies, by placing $150m into ISQ Global Infrastructure Fund IV and $100m into ISQ Growth Markets Infrastructure Fund II.
The ISQ Global Infrastructure Fund IV is a global fund targeting a $15bn capital raise with no hard cap set.
I Squared Capital expects to co-invest in Fund IV, committing a maximum of $300m or 2% of the total capital raised, whichever is less.
Fund IV targets net returns between 11% and 16% and will focus on power and utilities, transportation/logistics, digital, environmental and social sectors.
The ISQ Growth Markets Infrastructure Fund II targets $3bn capital raise with a net internal rate of return of 15% to 17%.
Fund II plans to focus primarily on investments in North and Southeast Asia, Oceania and Latin America, with favoured sectors including transportation and urban infrastructure, renewable energy, digital, utilities and industrial decarbonisation.
Connecticut Retirement said it is considering making a $250m commitment to the CRPTF-GCM Emerging Manager Partnership, a fund-of-one between the pension fund and GCM Grosvenor.
The partnership will primarily invest through commitments to other funds, co-investment arrangements and strategic seeding partnerships with a net internal rate of returns target of 12% to 15%.
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