Meridiam seeks $900m for North American infrastructure fund

Meridiam plans to raise $900m (€788m) of capital for its latest US and Canadian infrastructure fund, according to one of its investors.

According to board meeting documents, the Public Employees Retirement Association of New Mexico and the Ohio Police & Fire Pension Fund have committed $75m and $80m, respectively, to Meridiam Infrastructure North America III Fund.

Last month, IPE Real Estate reported that the Maine Public Employees Retirement System had also invested in the fund.

New Mexico PERA confirmed to IPE Real Estate that Meridiam planned to raise $900m for the fund.

The French infrastructure fund manager raised just over $1bn in 2012 for its previous North America fund, according to placement agency Campbell Lutyens.

New Mexico PERA is investing in the fund to achieve greater diversification in its infrastructure portfolio.

The pension fund said the fund a value-added strategy that would complement its existing core infrastructure investments.

It expects the fund to generate gross returns of 12% to 15% by investing in greenfield public-private partnerships in the transportation, social and environmental sectors.

Ohio Police & Fire Pension Fund, which has to date only invested in infrastructure with IFM Investors, made the investment with Meridiam as part of its real assets allocation.

The pension fund recently increased its target allocation for real assets from 5% to 8%, following an asset allocation review.

The real assets portfolio will consist of agriculture, timberland and infrastructure investments.

It plans to commit $280m to such strategies this year, under advice of The Townsend Group.

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