The Washington State Investment Board (WSIB) is expecting to commit $250 million each to Global Infrastructure Partners II (GIP II) and Stonepeak Infrastructure Fund, a representative at the pension fund administrator said.
The board on Thursday is anticipated to approve each allocation, suggested by the WSIB private market committee, said spokeswoman Liz Mendizabal. She added the committee recommended investing with GIP II and Stonepeak on Thursday, September 6.
Mendizabal said the $500 million commitment to infrastructure fit into the tangible asset portfolio WSIB established in 2008, an investment programme also including agriculture, timber and mining. The portfolio is overseen by three people, including a senior investment officer, Mendizabal noted.
The $3 billion allotted to the tangible asset portfolio is 5 percent of the $62.4 billion commingled fund managed by WSIB, said Mendizabal, pointing out the board has invested $1.3 billion.
For the infrastructure portion of the tangible asset programme, the board in 2007 invested $150 million in Alinda Capital Partners I and $100 million in Highstar Capital III. The following year, WSIB committed $400 million to Alinda Capital Partners II.
The $500 million allocation to infrastructure, which will bring the total active tangible asset allocation to $1.8 billion, is part of a new plan to invest $1.75 billion.
Jack Cowell, director of marketing for Global Infrastructure Partners, manager of GIP II, as well as Trent Vichie, senior managing director for Stonepeak Infrastructure Partners, declined comment.
GIP II in 2012 became the largest infrastructure fund to date, raising $7.5 billion in capital. The core infrastructure vehicle is targeting $8 billion.
In August, Virginia Retirement System made a $150 million commitment to GIP II, while Maine Public Employees Retirement System put $75 million with the fund.
Stonepeak, which spun out of private equity firm The Blackstone Group in April 2011, opened in November and in April secured a $40 million commitment from the New Mexico Educational Retirement Board (NMERB).
Stonepeak has a $400 million anchor commitment from TIAA-CREF, which has $485 billion under management.