DIF Capital Partners is seeking to raise €4bn for its latest infrastructure fund, according to an investor.
Arkansas Teacher Retirement System (ARTS) disclosed in a meeting document that it has approved a €50m commitment to DIF Infrastructure VII, a fund which has a €5bn hard cap.
DIF Capital will be issuing a co-investment of 1% of Fund VII’s total commitments into the fund.
Fund VII will be seeking transaction that can yield gross internal rate of returns of 12% to 14% as it invests in social, transportation, renewable energy, energy transition and utility infrastructure in Europe and North America.
The commitment approved by ARTS is the pension fund’s final real asset commitment for the year.
ARTS has set 2023 real assets pacing plan of $475m, the pension fund’s consultant the Townsend Group disclosed in a meeting document.
The plan for 2023 is to invest $200m each into non-core and core real estate funds that invest in assets including industrial and apartment properties.
ARTS also plans to invest $75m in infrastructure. The strategy involves moving up the risk spectrum to capitalise on potential distress from the rising interest rate market environment.
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