Investors - SEPTEMBER 23, 2014

Washington commits $400m to infrastructure

by Reg Clodfelter

The Washington State Investment Board has committed $400 million to infrastructure funds between three commitments, giving $100 million to Prostar Capital’s Asia-Pacific Energy Infrastructure Fund, $200 million to Sheridan Production Partners III and $100 million in a co-investment with Global Terminal Investments.

Prostar’s APEIF targets midstream energy infrastructure assets such as storage assets and pipelines. The fund will reportedly target brownfield investments, focusing on remarketing storage space and improving the efficiency of operations. The fund has a sister vehicle that targets U.S. energy with a focus on a private equity model.

Houston-based Sheridan Production Partners closed its second fund in November 2010 after raising $1.8 billion. The fund followed the same strategy as Sheridan’s first fund, which closed in 2007 after raising $1.3 billion, by funding the acquisition of onshore producing oil and gas properties in the United States.

WSIB could not comment on the strategy to be used in its co-investment venture with Global Terminal Investments, though the firm invests in, develops and actively manages container terminals around the world.

All three investments were housed in WSIB’s “tangible assets” portfolio, which is worth $1.27 billion, or 1.2 percent of the investment board’s $104 billion in assets under management. The board has a target allocation to tangible assets of 5 percent.

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