Hawaii ERS commits $50m to KKR infrastructure fund

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Hawaii ERS commits $50m to KKR infrastructure fund

Hawaii Employees' Retirement System (ERS) has recently approved a $50 million infrastructure commitment, said Vijoy Chattergy, chief investment officer.

The board approved a $50 million commitment to KKR Global Infrastructure Investors Fund II, which focuses on North America and Europe. The allocation will be part of the board's overall real-return portfolio, which has a 5% target allocation.

KKR is trying to raise $2 billion for its KKR Global Infrastructure Investors Fund II. The fund seeks equity positions in brownfield economic and social assets with the scope to examine greenfield opportunities a global focus with a particular interest in the US and Europe.

The fund will primarily invest in renewable energy, pipelines, utilities and transportation-related assets.

KKR recently acquired a one-third stake in Acciona Energía Internacional at a price of €417 million (US$567 million) and will help to fund future growth of the renewables portfolio.

The Merced County Employees' Retirement Association (MCERA) from California, the New Mexico Public Employees' Retirement Association (NMPERA) and the Maine Public Employees Retirement System (MainePERS) have approved commitments to the fund.

Hawaii ERS also announced $105 million commitments for real estate funds. The pension fund has a 7% target allocation to real estate.

As of June, 2013, the Hawaii ERS portfolio of investments had a total value of $12.7 billion.

Share this news