First Reserve reached a final close on its second energy infrastructure fund, First Reserve Energy Infrastructure Fund II (FREIF II), on hard-cap of $2.5 billion. The vehicle was formally launched eight months ago and had an initial target of $2 billion. Below are several investors in the fund that Infrastructure Investor Research & Analytics keeps track of in our database.
The Arkansas Teacher Retirement System (ATRS) was established in 1937 to provide retirement benefits to the employees of the state's education community. The $14.2 billion Retirement System made its maiden allocation to infrastructure in July 2013. It has committed $100 million to FREIF II and Antin Infrastructure Partners II. Moving forwards, ATRS plans to invest up to $200 million in real assets, which includes infrastructure and private equity real estate.
The New Mexico State Investment Council (SIC) is an endowment fund which distributes more than $600 million annually, primarily to benefit New Mexico public education programmes and New Mexico's taxpayers. As of March 2014, the Santa Fe-based SIC had $19.1 billion in assets under management and allocated $100 million to FREIF II. It has a 10% allocation to real estate and has committed approximately $1 billion to real assets.
The New York City Retirement Systems (NYCRS) consists of New York City Board of Education Retirement System, New York City Fire Department Pension Fund, New York City Police Pension Fund, New York City Teachers' Retirement System, and New York City Employees' Retirement System. The $147.9 billion pension fund committed $200 million to FREIF II, which brought its total infrastructure allocation to $800 million.
The Teacher Retirement System of Texas (TRS), formed in 1937, provides retirement and related benefits for those employed by the public schools, colleges, and universities supported by the State of Texas. The $123.9 billion retirement system committed $150 million to the First Reserve Energy Infrastructure Fund II to increase its exposure to the energy sectors in North America and Western Europe. TRS started to invest in real assets in 2008 and currently has $2.11 billion investments in infrastructure.
The Virginia Retirement System (VRS), established in 1942, administers group life insurance, deferred compensation, and cash match plans for Virginia's public sector employees. The Richmond-based pension fund, whose total assets were $62.3 billion as of December 2013, committed $150 million to FREIF II. This commitment is the latest investment VRS made in the asset class and was announced with VRS's decision to increase its target allocation to real assets from 8 percent to 15 percent over the next five years.