Washington pension in $500m bonanza

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.

A spokeswoman for the pension said the $500 million commitment to infrastructure fits into the tangible asset portfolio WSIB established in 2008, an investment programme also including agriculture, timber and mining.

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.

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.