Orange County pension fund has announced it has hired Argo Infrastructure Partners and BlackRock to create a 2% infrastructure allocation.

According to a board-meeting document, the US$13.1 billion pension fund has committed US$130 million to BlackRock’s Global Renewable Power Fund II in addition to arranging a US$130 million separate account with Argo, which is relatively rare for a US public pension plan, as most opt for commingled funds.

OCERS will be capable of investing alongside Argo’s AIA Energy North America platform as part of the separate account. The California State Teachers’ Retirement System (CalSTRS) and Dutch pension fund manager APG are base investors in AIA.

Argo will center its attention in the US and Canada, including energy and water assets, renewables and thermal generation/transmission, and pipelines and regulated midstream. With limited exposure to development, existing assets will be targeted by the 15-year separate account with returns of 9% (net) and 10% (gross).

The BlackRock fund will be active, according to OCERS, mostly in the US but will also be able to invest in Europe, particularly focused on Norway. Operational and construction-ready solar and wind assets will be targeted. The core-plus strategy is targeting returns of 9-10% (net) and 11-13% (gross). Commitments were made based on the recommendation of consultant Meketa Investment Group.