Florida State Board of Administration (SBA) has approved a $100m (€92.2m) capital commitment to an infrastructure fund managed by Latin America alternative asset manager Patria Investments.

Florida SBA said it is backing the manager for the first time with a commitment to the Patria Infrastructure Fund IV, a fund which has so far raised $1.6bn of its $2.8bn fundraising target.

The fund is expected to invest between 60% to 80% of its capital in Brazil.

The pension fund told IPE Real Assets that given the “distress and need for infrastructure in Brazil, a good risk/adjusted return exists in this opportunity”.

Fund IV will also target assets in Chile, Peru, Columbia and possibly Argentina.

Florida SBA, which has made the commitment into its opportunistic alternative asset class, said Fund IV will be investing in assets that can produce net internal rate of returns of 15%.

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