Pennsylvania PSERS creates $250m US infrastructure co-investment venture

Pennsylvania Public School Employees' Retirement System (PSERS) has set up a separate account relationship with GCM Grosvenor to co-invest in US infrastructure. The US public pension fund said in a meeting document that it has made a £250m (EUR238m) commitment to the GCM US Partnership Opportunities as the sole investor in the fund. Pennsylvania PSERS stated in the meeting document that it believes that traditional public funding sources are being stressed to invest in infrastructure in the future leaving an opportunity for private capital sources to fill in the gap in the US.

The capital allocated to the GCM US Partnership Opportunities fund will be used to make co-investments worth £25m to £40m each in a mixture of core, core-plus and value-add infrastructure assets.

GCM US Partnership Opportunities is expected to invest at least 40% of its capital in transportation assets, 20% each in renewables and digital and 10% in conventional power generation assets.

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