Ridgewood Infrastructure’s latest fund, which targets water-related and other strategic infrastructure assets in the US lower middle market, has raised $673m (€661.8m), according to a recent SEC filing.
According to sources, the Ridgewood Water & Strategic Infrastructure Fund II fund targets a $1bn fundraise. Ridgewood Infrastructure raised $600m for its first fund in February 2020.
The Sacramento County Employees’ Retirement System (SCERS) disclosed in a recent meeting document that it had made a $50m commitment to the middle-market infrastructure fund.
Steve Davis, chief investment officer for the pension fund, said, “The majority of institutional capital investing in infrastructure targets asset sizes requiring equity exceeding $250m and typically $500m or more. Ridgewood WSIF II (Fund II) expects the assets it targets to require fund equity of $50-$150m.
“From data provided by Information Infrastructure Report dated October 2021, nearly 40% of North American infrastructure transactions were less than $150m equity investment.”
The latest Ridgewood Infrastructure vehicle, which is considered to be a core plus/value-add fund, targets a mixture of water, utilities, transportation and energy transition assets.
SCERS also disclosed in its meeting document that it had added Nordic Real Estate Partners to its real estate manager line-up by making a €38m commitment to the NREP Nordic Strategies Fund V fund.
The value-add NREP Nordic Strategies Fund V fund seeks to raise €2.75bn to mostly invest in the Nordic countries.
The fund will be mostly investing in a mixture of logistics, residential rental properties and care homes. The targeted returns are net IRRs in the range of 12% to 14%.
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