The Oregon Public Employees Retirement Fund (Oregon PERF) is backing Brookfield Asset Management’s third infrastructure fund with $400m (€360m).
Brookfield is aiming to raise $10bn, with a hard cap of $12bn for the global fund.
The manager’s previous fund, Infrastructure Fund II, raised $7bn in 2013.
The fund is targeting the transportation, renewable power, utilities and energy sectors.
Brookfield, which seeks influence over its investments through control or co-control, is co-investing $4bn in the fund, making it one of the largest co-investments for any infrastructure fund.
Oregon PERF, which considers the fund a core investment strategy, was attracted by its targeted net IRR of 10%.
The fund, which has a four-year investment period and 12-year term, is targeting investments ranging from $400m to $1bn.
Oregon PERF believes large transactions will complement the investments it holds with other infrastructure managers.
Stonepeak provides exposure to middle-market infrastructure assets, while Global Infrastructure Partners is involved with large joint venture transactions.
The pension fund’s commitment to Fund III will be an anchor commitment for its infrastructure portfolio.
The investor has now approved $1.95bn in aggregate commitments to the sector.
Oregon PERF holds infrastructure within its alternatives portfolio, with a target allocation for infrastructure of 20-30% of alternatives, amounting to $1.7bn-2.5bn based on the pension fund’s current net asset value.