According to pension fund documents, the Oregon Public Employees Retirement Fund has invested $200 million to the first infrastructure debt fund launched by Global Infrastructure Partners.
GIP, which will be making a 1% co-investment, is aiming to make a first close next month.
The new fund will invest in energy, transportation, water and waste. It will be open to greenfield and brownfield development. It will focus on the OECD regions of North America, Europe and Australasia, although 10% can be allocated to non-OECD countries.
It will look to span the capital structure, including secured, unsecured, subordinated and convertible debt, and preferred equity, and hold 20 to 25 investments, ranging in size from $50 million to $250 million.
Oregon PERF has so far made $950 million in infrastructure commitments. It committed $150 million to one of GIP' global infrastructure fund in 2011.
The new GIP Capital Solutions Fund is targeting a net IRR of 9% to 11%, including a cash yield of 5% to 7%.
Global Infrastructure Partners (GIP) is an independent infrastructure fund manager that invests worldwide in infrastructure assets and businesses in both OECD and select emerging market countries.
GIP has offices in New York and London, with an affiliate in Sydney and portfolio operations headquarters in Stamford, Connecticut.
GIP manages in excess of $18 billion for their investors. Their thirteen portfolio companies have combined annual revenues of over $4.5 billion and employ more than 12,000 people.