Stonepeak Infrastructure Partners is close to raising $650m (€598m) for its second fund.

The Teacher Retirement System of Texas committed $250m to the value-add Stonepeak Infrastructure Fund II, according to an email from the pension fund.

The Washington State Investment Board is also planning a $400m commitment, having approved the amount at its private markets committee level.

Full board approval is expected on 17 December.

Fund II will invest in a variety of infrastructure assets across the US and Canada.

Stonepeak will seek controlling interests in the power, water, energy, communication, renewables and transportation sectors.

The company is looking to raise $2.5bn for the fund, which has a $3.5bn hard cap. 

Limited partners are projected to achieve a 12% net IRR, inclusive of a 4% cash yield.

The fund manager will co-invest $20m, or 1% of total commitments.

Stonepeak is planning to invest between $75m and $300m in each transaction.

Texas Teachers’ commitment to Fund II was part of $345m in new real-asset commitments made in November, according to an email.

The other commitment was $145m for LaSalle Genco in a partnership investment in which the pension fund is the single limited partner. 

Capital will be invested in core US real estate.