Florida State Board of Administration (SBA) is investing $200m (€196.7m) in railcar leasing via ITE Management.

The pension fund said it has set up the Red Hills Rail I fund with ITE Management to co-invest alongside the open-ended ITE Rail Fund.

ITE Rail Fund manages and leases railcars primarily in North America. The fund targets an internal rate of return of more than 10% over a 15 to 20-year period.

Florida SBA said it has also made a $150m commitment to ISQ Growth Markets Infrastructure Fund, a fund value-add managed by I Squared Capital Advisors. The fund targets infrastructure assets in North America, Asia and Latin America.

Florida SBA has also issued a $40m co-investment commitment into a portfolio of real estate assets located in Denmark. The investment has been made by way of a co-investment alongside the Invesco Strategic Opportunities III fund.

The manager of the value-add fund, Invesco Real Estate, declined a request for comment.

Florida SBA approved a $75m commitment to Opportunities III in 2019.

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