Minnesota Board of Investment (BOI) is considering making a $200m (€184.1m) commitment to KKR’s latest global infrastructure fund.
The pension fund disclosed in a meeting document that it is considering backing KKR Global Infrastructure Investors V, a fund seeking to raise $20bn.
The fund is expected to seek investments offering long-term, stable cash flow through three investment types: regulated assets like water utilities and renewable energy, long-term contracts of over seven years with infrastructure providers and market-protected investments like asset leasing.
The fund’s overall net returns are expected to be in the low teens with a mid-teens gross returns target.
Minnesota BOI said it is also considering a possible $125m commitment to the AG Europe Realty Fund IV, a European value-add property fund managed by TPG Angelo Gordon.
As previously reported, TPG Angelo Gordon is seeking a $2.5bn total capital raise with a $3bn hard cap for Fund IV.
The fund will invest across traditional real estate categories like industrial, residential, office, hotels and retail, with the potential for opportunistic investments in alternative asset classes such as life science, data centres, self-storage, student/senior housing and land.
TPG Angelo Gordon declined a request for comment.
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