The Washington State Investment Board is looking to invest up to $1bn (€935.4m) in infrastructure with Global Infrastructure Partners (GIP).
The US pension fund is considering two separate, $500m commitments with the New York private equity firm.
GIP is, according to media reports, looking to raise $15bn for the fund at a time of increased activity in the infrastructure fundraising space.
The number of unlisted infrastructure funds in the market reached a record high of 160 at the start of the fourth quarter, targeting a combined $95bn in capital commitments, according to research by Preqin.
Washington State is initially investing $500m in GIP’s third fund.
The same amount would be set aside for a separate account, on which the firm will have full investment discretion.
The allocations were made as a recommendation by the pension fund at its private markets committee meeting.
Approval by the investor is expected at its full board meeting on 19 November.
Washington State invested $250m in GIP’s second fund in 2012.
GIP, which has regional offices located in New York City, Stamford, London and Sydney, has mainly invested in OECD countries.
The fund manager can also pursue high-quality assets with the potential for superior risk-adjusted returns in selected non-OECD countries.
Most of the company’s deals have been larger-scale investments in assets that provide essential services, have high barriers to entry and offer significant governance positions.
It currently holds the London City Airport and the Great Yarmouth Port Company in the UK.
The fund manager looks to invest in energy, transportation and water and waste assets, with conservative leverage.