CalPERS and Illinois State Board of Investment Invest in Alinda’s Second Infrastructure Fund

by Richard Stus

  • 02 Feb 2010
  • INF

CalPERS and Illinois State Board of Investment, along with over 16 other institutional investors, have committed to Alinda Infrastructure Fund II. The second Alinda infrastructure fund closed at the end of January on USD 4 billion, and offers investors a value added strategy, with the possibility that 20% of the fund will follow an opportunistic strategy. The fund plans to invest 75% in US and Canada, with the remainder earmarked for Europe. In terms of industry focus, the fund will invest up to 60% in social infrastructure, 30% in energy infrastructure and 10% in industrial infrastructure. Other investors include North American and European public pension funds, Australian superannuation schemes and also a selection of insurance companies, endowments and foundations.

Illinois State Board of Investment has a 5% strategic allocation to the infrastructure asset class and has built a portfolio of investments on a global scale, but has traditionally invested in US or European focused funds. The investment board is willing to invest across the project stage spectrum, and whilst the majority of its portfolio features economic infrastructure, it has also acquired exposure to social infrastructure projects. CalPERS plans to invest 3% of its total assets in infrastructure. Along with commitments to both Alinda infrastructure funds, CalPERS has invested five other infrastructure funds that provide it with exposure to North American and European economic infrastructure, such as transportation, energy.

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