Sacramento County Employees’ Retirement System (SCERS) has added Ara Partners to its infrastructure manager lineup by committing capital to the manager’s fund.
SCERS disclosed in a meeting document that it had approved a $40m (€36.7m) commitment to Ara Partners Fund III.
Steve Davis, CIO at SCERS said Ara Partners is one of the few managers dedicated to industrial decarbonisation, giving it [Ara Partners] a first-mover advantage.
Davis added: “The firm has a competitive advantage due to its in-house technical and operational capabilities across industrials, food recycling and chemicals.”
Fund III has a $2bn fundraising target, almost double the $1.1bn the manager raised at Fund II’s close in September 2021.
Fund III, which will invest in the US and Europe, is expected to achieve a net leveraged return of 24% and a 2.4x net multiple.
The fund will target chemicals and materials, energy efficiency and green fuels, food and agriculture waste and manufacturing and industrial services sectors.
SCERS has also made a $50m commitment to Meridiam Infrastructure North America Fund IV. The fund, managed by Meridiam Infrastructure Partners is seeking to raise $1.7bn to invest in value-add assets.
Fund IV will be seeking investments in transportation, social and environmental sectors that are expected to generate gross returns of 12% to 15%.
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