North Dakota State Investment Board is planning to issue a $140m (€122m) commitment to Macquarie Infrastructure Partners IV.
Earlier this month, IPE Real Assets reported that the pension fund was planning to diversify its infrastructure portfolio by reducing its exposure to a JP Morgan Asset Management fund and investing in a new vehicle managed by Macquarie Infrastructure & Real Assets (MIRA).
Currently, around three-quarters of the pension fund’s $544m infrastructure portfolio is held in the JP Morgan Infrastructure Investments Fund, an open-ended vehicle established in 2006.
According to North Dakota, the MIRA Partners IV fund is seeking to raise up to $5bn.
The pension fund said in a board meeting document that the fund is targeting an internal rate of return of 10% to 12%.
It will invest in core and core-plus utilities and energy, transportation, communications and waste management assets, the majority of which will be in the US and Canada, North Dakota said.
