Sacramento County Employees’ Retirement System (SCERS) has approved a $35m (€32.3m) follow-on commitment to the IFM US Infrastructure Debt Fund, according to the pension fund’s board meeting document.
SCERS initially invested $40m in the IFM Investors-managed infrastructure fund back 2019.
The pension fund said its investment in the IFM US Infrastructure Debt Fund produced a since inception net levered internal rate of return of 9.4% through September of last year.
Steve Davis, CIO of SCERS, said: “The IFM US Infrastructure Debt Fund serves as a core private credit investment, where current income is a primary investment objective. Loans made by the fund are secured by tangible infrastructure assets, making it more attractive form of collateral.
“The essential service and necessity of the underlying infrastructure assets reduces business and operating risk typically associated with corporate loans, while providing stable and predictable cash flows, resulting in lower credit and repayment risk.”
The loans written for the fund are usually senior secured loans.
At the end of last year, the IFM US Infrastructure Debt Fund had total investments valued at $475m with $105m of yet-to-be-called commitments.
The US fund – which targets infrastructure assets like transportation, utilities, power generation, midstream energy and social – can invest as much as 25% of its capital in OECD countries.
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