Virginia Retirement System (VRS) has established a separate account with Pantheon to invest in infrastructure funds.

The pension fund told IPE Real Assets that it is committing $200m (€161m) to the multi-manager strategy.

Pantheon will help VRS diversify its infrastructure portfolio. It already has infrastructure investments that include stakes in Icon Infrastructure IV and EQT Infrastructure Fund III.

Pantheon, which is active in fund primaries, secondaries and co-investments, focuses on funds that invest in core and growth-oriented infrastructure assets.

VRS has also approved a $100m commitment to the Penwood Select Industrial Fund V, which specialises in US industrial property.

It joins New York State Teachers’ Retirement System and the State of Wisconsin Investment Board, which together have provided the majority of the $325m of equity raised for the fund.