Texas pension seals GIP II investment

The El Paso Firemen & Policemen’s Pension Fund has put $2.5m with Global Investment Partners' second infrastructure fund. GIP II, which held its first close with $3bn, is targeting $6bn total.

A $1 billion El Paso, Texas pension fund established to help local law enforcement and firefighters invest for retirement has allocated $2.5 million with Global Investment Partners' second infrastreucture fund (GIP II).

The El Paso Firemen & Policemen’s Pension Fund carried out its investment with GIP II, confirmed Robert Stanton, executive director of the retirement plan.

GIP II reached a first close in December with $3 billion. In addition to El Paso, the Northumberland County Council Pension Fund and the Shropshire Pension, both from the UK, allocated to GIP II, which GIP is expecting to close around $6 billion.

GIP II is the predecessor to Global Investment Partners I, a $5.64 billion vehicle closed in 2008 which can boast capital from Alaska Permanent Fund Corporation, Industriens Pension and the West Midlands Pension Fund among its investor base.

The allocation to GIP II came amid a $14 million portfolio rebalancing that led to El Paso also putting $9 million with Partners Group Global Real Estate 2011, run by Partners Group, and $2.5 million with Riverside Fund V, managed by Boston-based private equity firm Riverside Partners.

Pension consultant Meketa Investment Group recommended El Paso allocate to GIP and Riverside, according to a meeting agenda. California-headquartered Meketa is also advising the Lexington Contributory Retirement System and the Worcester Regional Retirement System, both in Massachusetts, on their first move into infrastructure.

Stanton did not explain what prompted El Paso to undertake a $14 million portfolio rebalancing.