Teachers’ Retirement System of Louisiana (TRSL) has approved a $75m (€63.6m) commitment to LS Power Equity Partners’ latest North America conventional generation and renewable energy infrastructure fund.
The pension fund disclosed in a board meeting document that it has committed the capital to LS Power Fund VI, which is targeting $4bn with no hard cap.
A final close for the fund is expected in the first quarter of next year.
IPE Real Assets understands that the fund targets net and gross returns of 15% and 20%, respectively, on an internal rate of return basis.
LS Power’s co-investment in the fund will equal 5% of the vehicle’s total commitments.
The majority of the capital for Fund VI will be deployed across conventional generation and renewables, with each sector expected to account for one-third to one-half of the vehicle. Target assets include gas-fired generation, solar, wind and battery storage.
TRSL has also approved a $25m commitment to Energy Capital Partners VI, a fund expected to have a final close in June this year. The fund is targeting a $5bn capital raise with a $7.5bn hard cap.
As previously reported, Energy Capital Partners VI aims to invest in electricity infrastructure, including transition fuels and renewables, and sustainable infrastructure like carbon capture and waste management.
The fund, which will mainly invest in North America, expects to make a total of 10 to 15 investments with equity commitments ranging from $250m to $750m.
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