The Local Pensions Partnership (LPP) has launched a new infrastructure fund, worth an initial £688m.
The Global Infrastructure Fund will house the infrastructure assets of LPP’s two shareholder pension schemes, the Lancashire County Pension Fund and the London Pensions Fund Authority.
The fund will be managed by Local Pensions Partnership Investments, the LPP’s alternative investment fund manager.
Management intend to close the funding call in September, when it aims to raise at least £1.5bn of capital.
The fund will invest in infrastructure in the UK, Europe and North America directly as well as through funds and in co-investment deals.
UK local government pension schemes and other public pension schemes are eligible to invest in the open-ended fund.
LPP chief executive Susan Martin said infrastructure is a core investment focus for the organisation. “This new fund capitalises on our extensive knowledge and experience in what is a highly illiquid asset class,” she added.
“In pooling the infrastructure allocations of our shareholder pension schemes, the fund will also be an attractive vehicle for other investors looking to build their exposure to cost-efficient, diversified infrastructure assets.”
This is the latest in a series of new funds by the not-for-profit pension services organisation, following its £1.8bn private equity launch in March and the £5bn Global Equity Fund in November. Further funds are expected with those focusing on credit, fixed income and total return in the pipeline.
