The Oregon Investment Council, the New Mexico State Investment Council, the Maine Public Employees Retirement System and the Seoul-based Public Officials Benefit Association (POBA) have recently announced that they have committed a total of US$641 million to Brookfield Infrastructure Fund III, managed by Brookfield Asset Management.
The Oregon Investment Council through the Oregon Public Employees Retirement Fund is backing Brookfield Asset Management’s third infrastructure fund with US$400 million.
Additionally, the Public Employees Retirement Association of New Mexico, managed by New Mexico State Investment Council, has agreed to invest US$75 million in the fund while the Maine Public Employees Retirement System, has also committed US$150 million.
Moreover, South Korea’s big investors including the Public Officials Benefit Association (POBA) will also invest about US$16 million in the global infrastructure investment fund.
Brookfield Infrastructure Fund III is a continuation of Brookfield Infrastructure Fund II which closed in October 2013 with equity commitments totaling US$7 billion. The third Brookfield Asset Management fund is focused on transportation, renewable power, utilities and energy sectors in North America, Europe, South America and Australasia.
Brookfield Infrastructure Fund III is targeting a US$7 billion in its first close by the end of March 2016. Additionally, the fund, whichis predicted to become the world largest fund, has a US$10 billion target and a hard cap of US$12 billion. The fund has a target internal rate of return (IRR) of between 12-15%.