New Jersey Division of Investment has proposed a commitment of up to $100m (€93.9m) to the EQT Infrastructure III fund, according to a board meeting document.
The pension fund said EQT, a Swedish infrastructure fund manager, is planning to raise €2.9bn for the global fund.
IPE Real Estate reported last month that Maine Public Employees Retirement System (Maine PERS) plans to invest in the fund. It is understood that another US pension fund, Oregon Public Employees Retirement Fund, is also considering an investment.
EQT did not comment.
New Jersey Division of Investment is considering an investment in EQT III based on the recommendation of its consultant for real assets, TorreyCove Capital Partners.
The pension fund as yet has limited exposure to infrastructure.
The EQT fund plans to be active in continental Europe and North America, investing in mid-sized operating companies and assets, with limited development and construction exposure.
New Jersey Division has identified EQT a proven performer in infrastructure markets. It said the company has distributed approximately €8bn by exiting eight infrastructure investments since 2008.
These investments have generated a gross return of 35% and a gross multiple on invested capital of 3.4, outperforming other funds, according to the pension fund.
The new fund has a ‘waterfall’ structure, meaning that the general partner will not start to collect carry until the limited partners have received all of capital and preferred returns. The carry rate is 20% and the hurdle rate is 6%.