Swiss pension pool increases infra fund to more than $780m

IST3 Infrastruktur Global has now made 18 investments since its launch four years ago, including both direct and fund deployments.

Swiss pension group IST Investment Foundation has reached a third close on its infrastructure fund, bringing the total raised by the platform to SFr784 million ($781.7 million; €684.7 million).

IST3 Infrastruktur Global has seen an increase in contributions from existing investors, as well as new LPs joining the pool reserved exclusively for Swiss pension funds. The fund has been expanded from the initial five involved in the launch to 20 after the third close and IST plans to increase the fund to SFr1.5 billion, Margarita Aleksieva, head of asset management at IST3, told Infrastructure Investor.

The platform was launched in December 2014 and made its first investment the following month, paying SFr288 million for a minority stake in Swissgrid, Switzerland’s national grid company. It has also made direct majority acquisitions of wind and solar parks in Germany, as well as both primary and secondary fund investments in vehicles managed by Dalmore Capital and DWS. The fund targets direct investments and co-investments to comprise up to 80 percent of the portfolio, Aleksieva added.

The vehicle focuses on operational assets in OECD countries in the transport, energy, water, telecoms and social infrastructure sectors. It targets an IRR in the “upper single-digit range”, IST said, and has deployed to date more than half of the total commitments.

The platform added Mark Weisdorf, chief executive of JPMorgan Asset Management’s infrastructure investment group between 2005 and 2014, to its investment committee in November 2016. At the time, it had secured funds totalling SFr455 million from 17 institutions.