Connecticut Retirement Plans and Trust Funds is considering a $250m (€218.8m) commitment to IFM Investors’ global value-add infrastructure fund.
IFM Investors has set an initial target of $2bn for the IFM Global Value-Add Infrastructure Fund, with a hard cap of $3.75bn.
The fund manager also intends to commit $100m of its own capital through a co-investment.
The mid-market fund will primarily deploy capital globally across the US, Europe and Asia, with the option to allocate up to 20% to non-OECD countries as it targets a 14% net return, with a projected range of 12% to 16%.
Connecticut Retirement expects to reduce its future real estate deployment following a recommendation to lower its target allocation from 10% to 8%.
The pension fund currently holds a 7% real estate allocation across its $68.7bn overall portfolio.
The revised target is expected to take effect later this year, pending formal approval.
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