PSERS approves $250m commitment

The Harrisburg-based public pension has backed Mariner's third flagship infrastructure vehicle.

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Institution: Pennsylvania Public School Employees’ Retirement System
Headquarters: Harrisburg, US
AUM: $72.5 billion
Allocation to alternatives: 33.2%

Pennsylvania Public School Employees’ Retirement System has approved a $250 million commitment to International Infrastructure Finance Company III, according to materials from a January investment meeting.

Mariner Investment Group launched the infrastructure debt vehicle in August 2020 with a fundraising target of $1 billion and a $1.5 billion hard-cap. IIFC III seeks to generate attractive risk-adjusted returns by providing regulatory relief capital to top-tier bank counterparties backed by portfolios of primarily seasoned infrastructure finance, project finance, asset-backed finance and commercial real estate loans.

PSERS allocates $652.5 million to private infrastructure investments, comprising 0.9 percent of its total investment portfolio. The public pension has a target allocation to private infrastructure of 4 percent.

As illustrated below, PSERS’ recent private infrastructure commitments have primarily been to energy and renewables-focused vehicles that invest globally.

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