Texas Municipal backs Brookfield with $150m infrastructure

Texas Municipal Retirement System is backing Brookfield’s third infrastructure fund with $150m (€134.5m).

The commitment to the Brookfield Infrastructure Fund III, according to a board meeting document, is part of $12bn capital raise that Brookfield Asset Management is planning for the fund.

The manager is contributing $4bn of its own capital to the fund as a co-investment.

Texas Municipal said Fund III offers a global presence, targerting core assets that generate strong risk-adjusted returns.  Targeted net IRRs for the fund are 10% to 12%.

Brookfield will be investing in roads, rail, ports, airports, power, water and telecommunications.

The pension fund has put the commitment to Fund III in its real return portfolio.

Texas Municipal has also allocated $100m to Kildare’s European Partners II fund.

The pension fund said Kildare has strong expertise as a distressed investor, with a large market opportunity in Europe, where there is arounf $2tn of non-core commercial real estate on bank balance sheets.

Kildare is considering performing, sub- and non-performing loans secured directly or in-directly by assets which it can buy at a discount.

Partners II will invest mostly in Germany, the Netherlands, the UK and Italy.

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