The Virginia Retirement System (VRS) has established a new relationship with International Farming Corporation with a $125m (€112m) commitment, backing the manager’s US Farming Realty Trust III.

VRS will commit capital to the manager when it sees there is a strong investment opportunity, without a specific or targeted allocation.

The pension fund also allocated $200m to Global Infrastructure Partners’ Fund III, giving the fund global diversification within its infrastructure portfolio.

The manager is looking to raise approximately $12.5bn for the vehicle, with a $15bn hard cap.

Deals will be made in Europe and the US across the energy, transportation and water/waste areas.

Limited partners are projected to achieve a 15-20% gross IRR from the fund, which has a five-year investment period and 10-year total life.

Global Infrastructure Partners is looking to complete 10-14 investments for the fund, with controlling interest on each investment.

Most deals will be large and have a complex nature, creating less competition and more value creation for the manager, it said.