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London, Lancashire tie-up seeks ‘devil’s advocate’ for alternatives

The UK’s £12.5bn (€14.2bn) Local Pensions Partnership (LPP) is looking for access to independent third party analysis as a check on its internal recommendations for alternative investments.

According to a procurement notice, the pension services provider is looking for access to a “broad library of detailed investment and operational due diligence research papers”.

The partnership would use such material to help “round out its thinking” about investments, according to a spokesperson. The procurement notice referred to access to external research providing a “devil’s advocate to internal investment recommendations”.

The focus is on liquid alternatives, private equity, private credit and infrastructure.

For LPP, liquid alternatives are considered to encompass alternative risk premia strategies, active relative value strategies and dynamic directional strategies. The two founder funds – London Pension Fund Authority (LPFA) and Lancashire County Pension Fund (LCPF) – are targeting a 50%-55% allocation to alternatives, according to a spokesperson.

The procurement is not about asset advice nor is LPP seeking anyone to perform due diligence.

The procurement is open until 4 September and the contract has been valued at £3m.

LPP was created by the LPFA and LCPF a year ago, and has since launched three pooled funds, for global equity, private equity, and infrastructure.

It recently said it plans to launch credit, fixed income, and total return funds in the coming months.

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  • QN-2398

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