Oregon Public Employees Retirement Fund is broadening its infrastructure exposure by investing $400m (€368m) in Stonepeak Infrastructure Partners’ latest fund.

The pension fund revealed in a board meeting document that it had approved a commitment to Stonepeak Infrastructure Fund III, which is expected to have a first close this month.

Stonepeak, which is aiming to raise $5bn (with a hard cap of $7bn), focuses on middle-market, value-add infrastructure investments.

Most transactions will be in the form of equity investments of between $100m and $1bn in the power, water, energy, communication, renewables and transportation sectors.

Oregon PERF said the strategy complements its existing infrastructure portfolio, which is currently tilted towards larger assets and opportunistic strategies.

The pension fund has invested in Stonpeak’s previous two funds, committing $100m in 2012 and $400m in 2015.

Oregon PERF said it had identified a supply-demand imbalance in US infrastructure, which has suffered from underinvestment and is projected to have a $2trn funding gap over the next 10 years.