The $70 billion Pennsylvania Public School Employees’ Retirement Board (PSERS) committed €200 million ($215 million) to an infrastructure fund earlier this year.
Global infrastructure markets are expected to see trillions of Euros of new build modernization investments in the next decades, officials said in a review of the fund. The level of investment is required to keep pace with global growth as well as to fulfill the backlog in infrastructure investments that has accumulated over recent decades, they added.
Netherlands-based DIF Capital’s DIF Infrastructure VII was selected by trustees to take advantage of the broader infrastructure trend. Other investors in the fund include the New York State Common Retirement Fund.
According to a board memo, DIF VII will target high quality, infrastructure investments that generate long-term, predictable, and typically inflation linked cashflows. The majority of the fund is expected to be invested in operational assets. Furthermore, the Fund will invest in “build-to-core” investment platforms providing access to healthy development pipelines and construction-ready assets, as well as operational/construction asset portfolios.
Geographically, the fund will target predominantly investments across Europe and North America and expects to make roughly 25 investments, with investment sizes ranging between €100 million and €400 million.