Virginia Retirement System (VRS) is committing $75m (€60.9m) to LS Power Equity Advisors’ fourth fund.
The pension fund confirmed to IPE Real Assets it is investing in LS Power Equity Partners IV, a month after it was reported to have hired Pantheon to manage an infrastructure fund-of-funds mandate.
According to Teachers’ Retirement System of Louisiana, which is also investing in the fund, LS Power Equity Advisors is seeking to raise $2bn to invest North American energy infrastructure.
The fund will target large acquisitions – in the range of $200-500m – of power-generation, energy and related infrastructure assets.
It is the first new commitment to infrastructure made by VRS this year. In 2017, the pension fund added $359m of investments, including the Pantheon mandate, two fund commitments, and two co-investments.
VRS’s infrastructure portfolio, which is weighted 55% to North America, was valued at $1.36bn at the end of 2017.