Hume Capital Securities plc, the AIM listed Capital Markets and Wealth Management group has announced that it has been appointed the Investment Manager of the newly created Peterborough Infrastructure Fund.
Hume Capital will be responsible for establishing the fund which is expected to be £130 million. The purpose of the fund is to provide a holistic approach to infrastructure development for the City of Peterborough and to help the Council to execute its strategy whilst minimising the investment risk.
The fund will seek to develop key infrastructure targets whilst achieving an above inflation return for investors. The first phase of investments have already been identified. For Hume Capital Securities plc, this will represent a significant increase in assets under management, with the potential for further growth.
According to its press release, other councils have also expressed an interest in creating similar funds and Hume Capital has discussions under way with them.
This is the first time a council in the UK has partnered with an investment firm in this manner and is expected to lead to more funds being set up along this basis.
Hume Capital said there are considerable advantages to this type of structure which aligns the interests of tax payers and investors.