Teachers’ Retirement System of Louisiana has become a limited partner in the EnCap Flatrock Midstream VI commingled fund with a $50m (€44.4m) commitment, according to a board meeting document filed by the US pension fund.
EnCap Flatrock Midstream is the manager of the fund. It has set a targeted capital raise for the fund at $1.5bn. A first close is planned for this month and a final close for December 2027.
Fund VI will be investing in natural gas gathering, treating, compression, storage and transportation. Some transactions will also involve decarbonisation and gas-to-power services.
The targeted annual returns for the fund are IRRs of 15% net and 20% gross. Most of the capital for the fund will be invested in the US and Canada. There is an allowance for up to 15% of the fund to be invested outside of these two countries.
Louisiana Teachers also issued two additional $75m commitments for its real assets portfolio.
One of these was for NGP Natural Resources XIV. The fund has a targeted capital raise of $2.5bn.
NGP Energy Capital Management has a first close for this month, after which it will implement a hard cap.
It will be focused on upstream and midstream assets that are located in North America.
The other commitment was placed in the EnCap Energy Capital XIII. This is a $5.25bn fund with a final closing planned by the end of next year.
This is mostly a North America-focused fund in the upstream sector.
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