The Pensions Infrastructure Platform (PiP) has launched a multi-strategy fund to enable schemes to invest directly in UK infrastructure.
The PiP Multi-Strategy Infrastructure Fund has a target size of £1bn and a minimum commitment size which it claims will allow schemes of any size to invest and still share the same terms with all other investors. It will also offer a co-investment programme for larger investors to allow them to achieve even further benefits of scale.
PiP said the fund would provide institutional investors with degree of alignment and transparency not available elsewhere on the market today.
Chief executive Mike Weston added: “The launch of the fund is further proof that investors believe that PiP works and is delivering on its promise. With the support of our founding investors we’ve already mobilised £1bn for investment into UK infrastructure and with this fund we are achieving our key objective of providing pension schemes of all sizes with an efficient route to direct ownership of infrastructure assets.”
The fund will focus on core UK infrastructure, targeting transportation; (renewable) energy; utilities; communications; housing; and social infrastructure, and have a long-term buy-and-hold investment strategy to generate low risk, inflation-linked cash flows. Investors can achieve their preferred investment exposure through the co-investment programme and the Fund’s sub-portfolios, which have different risk/return characteristics.
“We are a true long-term investor and this is reflected in the way we build our relationships with both our investors and developers – allowing us to secure the long-term, low-risk, inflation-linked cash flows that pension schemes need. And because we’re backed by pension schemes and understand their needs, we have been set up and structured to meet these needs in the best possible way.”
Founding investor West Midlands Pension Fund’s strategic director of pensions, Geik Drever added: “There’s a huge opportunity in UK infrastructure at the moment. We helped establish PiP because we believe there’s room in the market for a transparent platform where pension funds can invest together at scale to make the most of this opportunity. The PiP Multi-Strategy Infrastructure Fund opens the door to this opportunity for pension funds of all sizes.”
