School Employees Retirement System of Ohio has made a $100m (€87.8m) commitment to LS Power Equity Partners’ latest North America conventional generation and renewable energy infrastructure fund.
The pension fund disclosed in a board meeting summary document that it had placed the capital into the LS Power Fund VI, marking its first new infrastructure commitment since approving a higher long-term asset allocation for the sector.
Under the new allocation, which takes effect at the start of the new fiscal year on 1 July, the target for the sector will rise from 7% to 10%. The new target is expected to be achieved over the next several years.
Future investments for the infrastructure strategy, which sits within the broader real assets portfolio, will be made through a mix of fund commitments and co-investments.
LS Power Fund VI is targeting a $4bn capital raise with no hard cap, with a final close on the fund expected in the first quarter of 2027.
The fund will target assets capable of delivering net internal rate of returns (IRR) of 15% and gross IRRs of 20%.
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