Liberty Mutual Investments (LMI) has expanded its partnership with Orion Infrastructure Capital (OIC) to deploy up to $750m (£568m) into infrastructure debt.

The firms have launched the Credit Income Strategy, which will target mid-market infrastructure debt opportunities originated across OIC’s platform. The pair said they have jointly committed $240m to the mandate so far.

As part of the partnership, LMI has entered into a long-term investment management agreement with OIC, giving it the option to deploy up to $750m. LMI, the investment arm of global insurer Liberty Mutual Group, has more than $130bn of capital under management and expertise across liquid, credit and alternative strategies.

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“LMI’s commitment allows us to expand the range of capital solutions we can provide to established middle market infrastructure businesses,” said Ethan Shoemaker, investment partner and head of infrastructure credit at OIC. “We see a compelling opportunity to generate attractive current income while supporting essential businesses with resilient cash flows.”

The strategy’s investments to date include SkyGround Utility, which provides overhead and underground electrical distribution and transmission infrastructure, and the LifeLine Group, which produces corn-based food ingredients, renewable fuel, animal feed and related co-products.

The strategy will sit within OIC’s existing infrastructure credit business, with an investment mandate “designed to complement the firm’s existing strategies”, the firm said.

Founded in 2015, OIC invests in mid-market infrastructure across subsectors including energy, power and digital infrastructure.

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“Middle market infrastructure has strong sector tailwinds, and we are pleased to deepen our long-standing relationship with OIC through this new strategy, which brings our credit capabilities to a growing set of opportunities across essential energy and infrastructure businesses,” said John Kim, head of alternative credit at LMI.

Latham & Watkins advised OIC on the deal.

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