School Employees Retirement System of Ohio (Ohio SERS) has increased its infrastructure investments within its real assets portfolio with two new commitments worth $135m (€128.7m) in total.
The pension fund disclosed in a board meeting summary that it made a $75m commitment to Global Infrastructure Partners Fund V.
As previoulsy reported, Global Infrastructure Partners (GIP) is seeking to raise $25bn for Fund V, for the global fund to target investments in the energy, transportation, water/waste and digital infrastructure sectors.
GIP intends to issue a co-investment of 1.5% of the fund’s total commitments, with the fund’s final close expected in the first quarter of this year.
Fund V targets a net internal rate of return of at least 13% by investing in core and core-plus transactions.
The majority of capital will be allocated to assets in OECD countries, with up to 15% of the portfolio permitted to be invested in non-OECD regions.
Ohio SERS said the other infrastructure commitment was for $60m into the ITE Diversified Transportation Asset Fund, which invests in transport sectors in North America, including railcars, intermodal freight, aviation, airport facilities and barges.
As previously reported, the open-ended core infrastructure fund is targeting an overall time-weighted net return of 8% to 10% per annum over its life, including a targeted net annual cash yield of 5% to 6%.
To read the latest IPE Real Assets magazine click here.
