The Teacher Retirement System of Texas has approved a $300 million allocation into the Brookfield Infrastructure Fund II (BIF II). Texas Teachers had made a $251 million commitment to Brookfield Americas Infrastructure Fund in 2010.

BIF II is a real asset fund focused on investments in the infrastructure sector managed by Brookfield Asset Management Inc. BIF II will follow the strategy of its predecessor fund seeking to acquire core infrastructure assets on a value basis with typically high barriers to entry, unique locations, or other similar competitive advantages. BIF II differentiates itself from peers by focusing on large transactions where competition may be limited and structure complexity allows for value creation.

The fund, which will make investments in renewable power, transportation, utilities and energy, will target four major regions of the world - North America (40%), Europe (25%), South America (20%) and Australia/New Zealand (15%).

In order for BIF II to achieve its target return (12% to 15% net IRR), Brookfield will acquire controlling ownership in 15 to 25 portfolio investments requiring $200 to $500 million of equity per transaction. Though leverage is not constrained, Brookfield has indicated that leverage on individual assets will range from 50% to 70%.

Several days ago, several sources said that Brookfield had crossed the US$6 billion mark on fundraising for its second infrastructure fund.

Among others, New Mexico State Investment Council (NMSIC) approved a commitment of $100 million into Brookfield Infrastructure Fund II in April 2013.