Investors - OCTOBER 13, 2014

Ohio Schools invests in infrastructure

by Reg Clodfelter

The School Employees Retirement System of Ohio has committed $50 million to Fortress Worldwide Transportation and Infrastructure Investors, managed by Fortress Infrastructure Partners, confirms Tim Barbour, senior communications coordinator with the $12.5 billion retirements system.

The fund initially closed in January 2013 after bringing in $395 million in commitments, but later reopened with an eye on $600 million more. The fund has produced a net IRR of 12.0 percent (gross 18.5 percent), including an annualized 8 percent income component on the $309 million of capital it invested as of Dec. 31, 2013. Barbour notes that it is the consistent income return that set this fund apart from others for SERS.

SERS does not have a target to infrastructure, as it is an allowed asset type within real assets, Barbour explained in an email. SERS has a target to real assets of 15 percent with a range of 10–20 percent. The actual allocation to the bucket is 10.4 percent, or $1.3 billion, as of July 31.

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