Two Korean LPs invest €90 mn in BlackRock's infra fund

Two Korean pension funds have together invested €90 million ($104 million) in BlackRock Real Assets’ co-investment fund Global Infrastructure Solutions IV (GIS4), according to an investment management source in Korea.

The source said the fourth series of the infrastructure fund, aiming for an 11% internal rate of return, has surpassed its target commitment of €1 billion and is waiting for a few non-Korean institutional investors’ decisions. After the decisions are made, BlackRock will announce the final close of the fund, the source added. 

Led by BlackRock Infrastructure Solutions team, the fund plans to invest in global infrastructure such as water treatment, roads, renewables, data centers and logistics centers in Europe and the US. The pipeline of the fund included food freezer storage and salmon fish farm vessels in North America, according to the source.

IPM Asset Management Korea led the two Korean investors’ commitment. The management fee of the fund has been set as lower than that of other global infrastructure funds, an official from IPM said. He refused to disclose details on the management fee. 

The London-headquartered IPM Group, a parent of IPM Asset Management, has managed more than $1 billion since its foundation in 2014. The group specializes in investment in infrastructure such as renewables and liquefied natural gas.

Write to Chang-Jae Yoo at yoocool@hankyung.com
Jihyun Kim edited this article.