EQT Fund Management turned away some capital for its latest infrastructure fund due to excessive investor interest, according to New York State Common Retirement Fund (NYSCRF).
NYSCRF said it had asked to commit $300m (€268m) to EQT Infrastructure IV but was allocated $268m.
EQT raised €9bn for the fund earlier this year, more than double the amount raised for its predecessor in 2017.
It was the first time that NYSCRF had invested in an EQT infrastructure fund and the pension fund said: “They have established an impressive track record in their previous infrastructure fund offerings and the new fund will offer us exposure in Nordic and continental Europe.
“This is important to us as we are currently under-exposed to European infrastructure.”
EQT Infrastructure IV, which has a global strategy, is expected to gain significant exposure to European markets.
“While it will depend on the available opportunities, we anticipate that more than half of investments for the fund will be in Nordic and continental Europe,” NYSCRF said.
EQT is targeting returns in the mid-teens and NYSCRF said the fund was a mixture of core-plus and value-add.
The fund will invest in energy, transport and logistics, environmental, telecommunications and social infrastructure.
NYSCRF has established an infrastructure portfolio worth $1.5bn and has committed $3bn to the asset class, as part of its 3% real assets allocation.
