Florida State Board of Administration (SBA) is investing in emerging-market infrastructure via a $150m (€124.7m) commitment to Actis Energy 5, a fund seeking to raise $4bn.
The pension fund is for the first time backing Actis by investing in the fund which targets low-carbon energy infrastructure assets in Africa, Asia and Latin America.
Florida SBA, which currently has most of its infrastructure investments in core and core-plus assets in developed markets, told IPE Real Assets that emerging and frontier markets typically have high demand for energy.
“These are driven by several factors like higher GDP growth, a need to replace ageing and inefficient high-cost infrastructure, an ambition to achieve transition to a lower cost and less carbon-intensive energy sector and a starting position in some markets where electricity access is very low, to begin with.”
Florida SBA has also announced a $200m commitment to Carlyle Aviation Leasing Fund, a fund seeking to raise $800m. The fund, which targets Tier 1 airlines, expects gross annual returns of 15% to 17% over a three- to five-year holding period.
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