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Days after announcing a $500 million (€373 million) joint venture with UBS Global Asset Management, California Public Employees Retirement System (CalPERS) said it will commit $300 million to Morgan Stanley Infrastructure Partners II and $250 million to the UBS International Infrastructure Fund II.
Under the $500 million partnership, CalPERS and UBS Global Asset Management (Americas) Inc. formed the joint venture, Golden State Matterhorn, LLC (GSM LLC), to pursue infrastructure investment opportunities across core, OECD markets. CalPERS and UBS made capital commitments of $485 million and $15 million, respectively, to the partnership.
The three infrastructure commitments amount to €1.04 billion. As of April this year, CalPERS had $3.8 billion in infrastructure and forestland investments, 1.3% of its total assets and below its target of 2%.
In October 2008, UBS closed the UBS International Infrastructure Fund with capital commitments of $1.5 billion. In July 2014, UBS announced it has secured at least $379.9 million for UBS International Infrastructure Fund II.
Sources commented in May 2013 that Morgan Stanley (MS)'s infrastructure investment unit planned to seek $4 billion for its second global fund, Morgan Stanley Infrastructure Partners II. In June 2014, it received a commitment of $250 million from Teacher Retirement System of Texas along with an additional $100 million for the fund's co-investment platform.
CalPERS is the largest public pension fund in the U.S., with more than $300 billion in assets. CalPERS administers health and retirement benefits on behalf of 3,064 public school, local agency, and state employers. There are more than 1.6 million members in the CalPERS retirement system and more than 1.3 million members in its health plans.