Washington State Investment Board to invest US$1 billion in GIP III

The Washington State Investment Board has plans to invest about US$1 billion in the third fund of Global Infrastructure Partners (GIP).

To be more specific, Washington State Investment would invest US$ 500 million in Global Infrastructure Partners III and other US$500 million in a separate account, on which the company would have investment discretion.

This announcement comes after sources said that GIP intends to raise as much as US$15 billion for its Global Infrastructure Partners III. This fund will follow Global Infrastructure Partners II, which completed fundraising for its second fund on 2 October 2012 with total commitments of US$8.25 billion.

Washington State Investment invested a total of US$250 million in Global Infrastructure Partners II in 2012.

GIP focuses on larger scale investments in assets that provide essential services, have high barriers to entry, and offer significant governance positions. GIP targets opportunities in OECD countries and high quality assets with the potential for attractive risk-adjusted returns in selected non-OECD countries.

The Washington State Investment Board manages investments for 17 retirement plans for public employees, teachers, school employees, law enforcement officers, firefighters and judges. This also includes the Deferred Compensation Program to supplement other retirement benefits. In addition, they also manage investments for 18 other public funds that support or benefit industrial insurance, colleges and universities, and developmental disability programs.