LGPS pool set to invest £2.3bn in private markets
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Border to Coast Pensions Partnership has launched the next stage of its private markets programme, with about £2.3bn of commitments from its partner funds.
The fresh commitments take the Local Government Pension Scheme pool’s private markets programme to £12bn. Pension funds participating in this part of the programme are those of Bedfordshire, Cumbria, Durham, East Riding, North Yorkshire, South Yorkshire, Surrey, Teesside, Tyne and Wear and Warwickshire.
“Due to our collective scale and dedicated investment team, we have been able to expand our partner funds’ long-term access to private market investing, secure access to quality managers and investment strategies, drive value for money and fee reductions, increasing the potential for enhanced long-term returns,” said head of alternatives Ian Sandiford.
The partner funds’ new commitments are the second phase of a three-year ‘Series 2’ programme which launched in April last year. They will be invested over the next year, with plans to deploy around £860m in infrastructure, £600m in private equity and £850m in private credit.
Investment themes will include software and healthcare, the energy transition, and the digital and data revolution, using managers with value creation strategies based on operational improvements, rather than a reliance on leverage to generate returns, according to the pool, which also stressed its focus on environmental, social and governance issues.
Series 1 of the programme contained three one-year tranches of £1.2bn, £1.8bn and £2.7bn respectively.
In April 2022, Series 2 was launched with initial commitments of £4bn, which included a £1.35bn climate opportunities offering.
