The National Association of Pension Funds (NAPF) yesterday announced details of the Pensions Infrastructure Platform's (PIP) first fund. The PPP Equity PIP Limited Partnership has been established by Dalmore Capital Ltd who will act as manager of the fund.
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion.
The fund has a hard cap of £500 million, of which £260 million has been committed. Further fund-raising from other pension schemes will now commence. Additional funds will form part of the PIP in due course.
Joanne Segars, Chief Executive, NAPF, said:
"This is a major milestone for the PIP and fantastic news for all UK pension schemes that have an interest in infrastructure investment. Investments will be targeted at meeting the PIP's original aim to make infrastructure work for pension funds, offering investors a low-risk, long-term investments providing inflation-linked cash flows."
The Chief Secretary to the Treasury, Rt Hon Danny Alexander MP said:
"Infrastructure is the backbone of a strong economy and we must invest to build the modern UK economy of the future. It's great news that the NAPF and its founding investors are starting to use this unique model. This is just the start and I urge other Pension Funds to step up and take advantage of the opportunity to match their interests with long-term infrastructure investments."
Alan Rubenstein, Chief Executive, Pension Protection Fund, said:
"Historically, it's been difficult for pension funds to invest in infrastructure in a concerted, cost-effective or long-term manner - the PIP marks a change in that. Today's announcement is testament to the hard work that has gone into making this platform a reality and the PPF is very proud to be part of it."
Michael Ryan, Chief Executive, Dalmore Capital Limited, said:
"Infrastructure can present a solid investment choice for pension schemes. There is significant diversity within the infrastructure asset class, and infrastructure assets are uncorrelated with traditional asset classes such as equities. Dalmore has extensive expertise in infrastructure investment and we are very pleased to be able to put this to work on behalf of a project as innovative and valuable as the PIP."
Founding Investors for this first close of this phase of the PIP PPP Equity Fund, include: British Airways Pensions, Pension Protection Fund, Railways Pension Scheme, Strathclyde Pension Fund and West Midlands Pension Fund.
The PIP is a not-for-profit, infrastructure vehicle with a target size of £2 billion.
Dalmore Capital Limited is an independent fund manager, which currently manages and advises on investment vehicles with aggregate assets under management of over £430 million. A Dalmore Special Purpose Vehicle will act as GP of the fund.
The PIP now has seven founding investors, including: British Airways Pensions, Lloyds TSB, Pension Protection Fund, Railways Pension Scheme, Strathclyde Pension Fund and West Midlands Pension Fund.