Sacramento County Employees’ Retirement System (SCERS) has approved a $50m (€46.3m) commitment to KKR’s second Asia Pacific infrastructure fund.
SCERS disclosed in a board meeting document that it has committed the capital to KKR Asia Pacific Infrastructure Investors II, marking the pension fund’s first-ever investment in infrastructure with KKR. The pension fund’s previous relationship with KKR was through a real estate transaction.
KKR is seeking to raise $6bn for the fund, according to SCERS. The manager raised $3.9bn for the inaugural fund in the series in January 2021.
Steve Davis, CIO for SCERS, said: “The Asia-Pacific region has attractive economic growth characteristics and an undersupply of infrastructure with limited institutional capital. This would offer a potential return premium to the developed markets of the US and Europe.”
The fund targets a net internal rate of return of 13% to 15%, according to the pension fund.
KKR declined a request for comment.
To read the latest IPE Real Assets magazine click here.
