The £45bn Midlands-based pool LGPS Central, with investment from two of its partner funds: West Midlands Pension Fund and Cheshire Pension Fund, has embarked on a co-investment across key UK regional airports.
The co-investment is also partnered with Macquarie Asset Management and includes investment in Birmingham, Bristol and London City Airports.
The pool said this reinforces the importance of “long-term, responsible capital in supporting UK infrastructure, regional connectivity, and economic growth”.
“Together, the investors are contributing to the continued development, sustainability, and operational resilience of airports that play a vital role in connecting regional economies to national and global markets,” said the pool in a statement.
LGPS Central, working with the West Midlands Pension Fund and their regional partners, was able to draw together interested partner funds to enable capital deployment into this UK infrastructure investment.
This collective approach does provide an example of potential future collaboration under the Fit for Future reforms, which will impress chancellor Rachel Reeves, by demonstrating how LGPS investors can mobilise capital to deliver long-term investments for not only members, but also communities.
“The investment reflects our commitment to long-term, responsible investment that delivers for our members and the wider economy,” said Paul Nevin, director of investment at the West Midlands Pension Fund.
Sean Greene, head of Cheshire Pension Fund, added: “This co-investment highlights the role that UK pension funds can play in supporting essential national infrastructure while contributing to regional growth and connectivity.”
The announcement coincides with the recent West Midlands Regional Investment Summit, where public and private stakeholders explored how local capital and institutional partnerships can help deliver sustainable growth across UK regions.
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