The Plymouth County Retirement Association (PCRA) has narrowed the strategic decision in its infrastructure investment portfolio, with Global Infrastructure Partners V (GIP V) and the IFM Global Infrastructure Fund as the prime candidates.
Global Infrastructure Partners V (GIP V): Targeting a fund size of $20 billion, GIP V focuses on critical global infrastructure assets. It operates with a 10-year term and the option for one-year extensions. The fund's management fee structure is tiered, starting at 1.50% on commitments up to $75 million and decreasing to 1.00% for commitments exceeding $225 million. Investors can anticipate an 8% compounded annual preferred return, with a performance fee of 20% above this return. The General Partner's commitment of 1.5% to the fund reflects strong confidence in its prospects.
IFM Global Infrastructure Fund:This well-established perpetual life fund, with a NAV of $54 billion as of mid-2023, invests in core infrastructure on a global scale. The fund levies a 0.77% annual management fee based on NAV and offers an 8% preferred return in local currency, with a carried interest of 10%. Its size and perpetual structure make it an appealing vehicle for long-term infrastructure investment.
PCRA's allocation to real assets stands at 9% as of August 31, 2023, against a target of 6%.
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Written By: Koncheng Moua, Director of Data Management and Strategy
Koncheng Moua is the Director of Data Management and Strategy at Dakota.