Additional details on GIP IV’s strategy disclosed in LP presentation

15 July 2019 - 12:00 am UTC

The USD 20bn Teachers’ Retirement System of Louisiana (TRSL) has approved a commitment of USD 50m to Global Infrastructure Partners IV (GIP IV), according to a source at the pension plan.

 

While GIP has historically invested approximately 68% of aggregate capital into energy assets, the manager expects to increase its allocation to the transportation sector in Fund IV and has achieved substantial success in prior airport investments, according to meeting materials.

 

Transports, air, and rail have been particularly strong performers in the 2016 vintage Fund III, which achieved a net IRR of 10.1% as of 1Q19.

 

As reported, GIP IV has just reached a second close with commitments of USD 13.5bn in May. The fund has a hard cap of USD 20bn and is anticipating a final close in 3Q19.

 

GIP IV will seek to invest in energy, transports, water, and waste in North America, Western Europe, Australia, and Asia. The fund will seek to make eight to 12 investments with ticket sizes from USD 1b to 2bn.

 

Separately, TRSL plans to invest a total of USD 100m in infrastructure, including transportation, utilities, energy, and communication, for fiscal year 2020 that ends on 30 June 2020.

 

It also plans to invest USD 450 to USD 500m in private market debt, USD 200m to USD 300 in real estate, and USD 100m to USD 150m in venture capital.

 

The plan has a current allocation of 2.4% to infrastructure, with a target allocation of 1.5% and a range of up to 4%.

 

The plan has previously committed to funds including Global Infrastructure Partners III (GIP III) (USD 50m) and Stonepeak Infrastructure Fund III (USD 50m).

 

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