The UK National Association of Pension Funds (NAPF), the leading voice of workplace pensions in the UK, last week confirmed it is in final discussions with Dalmore Capital Ltd to act as the manager of the equity mandate for the Pensions Infrastructure Platform (PIP).
NAPF has 1,300 pension schemes associated with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Joanne Segars, Chief Executive, NAPF, said:
"The PIP is working towards a first close with its founding investors. Discussions are ongoing with regard to an investment management role for Dalmore Capital."
The PIP will be a new, not-for-profit, infrastructure fund, by pension funds and for pension funds, aligned to the long-term interests of the UK pension funds who will be its main investors. This is the first time UK pension funds have combined to create such a financial entity in the UK.
PIP will have a target size of £2 billion. PIP is expected to invest at the low-risk end of the infrastructure asset spectrum, in projects free of construction risk and with low leverage.
Dalmore Capital Limited is an independent fund manager formed in 2009 by a highly experienced team of partners who have been actively investing in the UK infrastructure market since 1998. Dalmore currently manages and advises on investment vehicles with aggregate assets under management of over £430 million, making it one of the most prominent managers focused on UK infrastructure.
PIP already includes investments of schemes of private companies such as BT, BAE Systems and British Airways. Other pension funds such as Pension Protection Fund, London Pension Fund Authority (LPFA), West Midlands Pension Fund and Strathclyde Pension Fund and the Railways Pension Scheme are also in the platform. According to our last information, so far these funds have committed £1 billion.