Border to Coast Pensions Partnership, the largest local government pension scheme (LGPS) pool, has completed a string of fund commitments in its £18bn private markets programme on behalf of its partner funds.
Launched in April 2025, the third series of the programme, and entitled 3A, received £2.5bn in commitments from partner funds.
Border to Coast’s in-house private markets team has so far deployed more than £1bn of that capital to specialist funds investing in infrastructure (£515m), private equity (£500m), and private credit (£58m).
Aiming to leverage the benefits of scale, the private markets programme has expanded LGPS fund access to innovative, long-term investment opportunities while cutting costs for partner funds by an average 28%.
Building on this scale across the private markets industry, the programme has also unlocked access to greater potential risk-adjusted returns through co-investment opportunities.
In series 3A, Border to Coast has partnered with KKR Diversified Core Infrastructure Fund in the purchase of a joint venture with American Electric Power (AEP).
It has also partnered with Meridiam on a North American road project.
Often not available to LGPS funds prior to pooling, co-investments can offer strong global diversification and the potential for superior long-term returns.
“The private markets programme is a real-time demonstration of the value gained through scale, and maximising that scale through an expert in-house investment team,” said Joe McDonnell, chief investment officer at Border to Coast (pictured).
“It expands access to an innovative range of investment and co-investment opportunities around the world while dramatically reducing costs for partner funds. We are incredibly proud of the progress it has made to date,” McDonnell added.
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