Connecticut Retirement Plans and Trust Funds plans to approve $550m (€471.4m) to infrastructure funds managed by HarbourVest Partners and Palistar Capital.
The pension fund disclosed in a meeting document that it intends to commit $200m to the HarbourVest Infrastructure Income Partnership this year, with an additional $100m slated for next year. It’s also considering a $250m commitment to the Palistar Digital Infrastructure Fund III this year.
The open-ended HarbourVest fund, established in 2022, had a portfolio value of $801.3m as of the first quarter of this year. HarbourVest plans to make a co-investment of $15m, or 1% of total contributions, into the fund.
Geographically, the fund’s global portfolio is diversified with 45% in North America, 40% in Europe, 10% in Australia and smaller allocations to other countries.
The HarbourVest fund targets time-weighted returns ranging from 8% to 10%, with a net average annual yield of 4% to 6%.
The closed-end core-plus Palistar targets a $2.5bn fundraising target with a $3bn hard cap. Palistar will make a co-investment of $25m or 1% of unaffiliated investor contributions, whichever is less.
At least 80% of Fund III’s capital will target North American digital infrastructure, aiming for net internal rate of returns of 12 to 15%.
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