PIP executes first investment

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PIP executes first investment

The UK's Pension Infrastructure Platform (PIP) has completed its first investment, acquiring part of a 49.9% stake in a holding company for private finance initiatives (PFIs), Interserve PFI Holding, from Interserve pension fund.

The investment was completed in conjunction with the Dalmore Capital Fund II. The price of the assets was not disclosed.

Interserve PFI Holding consisted of 13 assets, including schools, government accommodation and projects overseen by the UK's Ministry of Defence. 

The Interserve pension fund acquired ownership of 19 PFI assets in late 2012, when the sponsor transferred a portfolio worth £55 million.

Jonanne Segars, chief executive of the National Association of Pension Funds (NAPF), added:

"It is great news that the PIP has been able to make this investment into low risk, index-linked investments so quickly after reaching first close."

In February this year, the National Association of Pension Funds (NAPF) announced details of the Pensions Infrastructure Platform's (PIP) first fund, the PPP Equity PIP Limited Partnership that had been established by Dalmore Capital, the manager of the fund.

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 fund has a hard cap of £500 million, of which £260 million has been committed.

Founding Investors for the first close of the PIP PPP Equity Fund, include: British Airways Pensions, Pension Protection Fund, Railways Pension Scheme, Strathclyde Pension Fund and West Midlands Pension Fund.

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