UK pensions infrastructure platform reaches 1bn milestone

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UK pensions infrastructure platform reaches 1bn milestone

The Pensions Infrastructure Platform (PiP) has helped secure over £1 billion (US$1.56 billion) of commitments from pension schemes to invest into UK infrastructure.

Since the close of the first PiP fund in February 2014, managed by Dalmore Capital, the PiP has been building momentum:

  • over £500 million (US$778 million) of commitments have been raised for the Dalmore PPP Equity PiP Fund,
  • over £130 million (US$202 million) of commitments for the Aviva Investors PiP Solar Photovoltaics (PV) Fund, and
  • over £370 million (US$576 million) in another co-investment alongside Dalmore Capital.

Mike Weston, Chief Executive of PiP, commented:

"The right types of infrastructure assets can be a great fit for pension fund investors as they offer the low risk, long-term, inflation-linked returns that help pension schemes meet their regular pension payment obligations. Historically it's been difficult and expensive for individual pension funds to invest in infrastructure on their own and the PiP was set up to change this by providing another, better, option for infrastructure investing."

"PiP has been working with established asset managers to deliver attractively structured and priced specialist infrastructure investment funds for pension funds small and large, and has now helped secure £1bn of commitments for investment into UK infrastructure − further evidence of the progress PiP is making in delivering a range of infrastructure opportunities tailored to the specific needs of UK pension schemes."

"The next step is the development and authorisation of PiP as a direct infrastructure investment manager 'by UK pension schemes, for UK pension schemes', and we hope to announce further news on this later in the year."

PiP was developed as a result of discussions between the National Association of Pension Funds (NAPF), Pension Protection Fund (PPF) and HM Treasury regarding the potential for pension funds to increase their investment allocation to UK infrastructure assets. As a result of these conversations, a Memorandum of Understanding was signed in November 2011.

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