Three London-based pensions groups – Local Pensions Partnership (LPP), London Collective Investment Vehicle (LCIV) and London Pensions Fund Authority (LPFA), which have combined assets under management of close to £57bn (€67.7bn) – have joined forces to create a London-focused investment fund, The London Fund.
The fund aims to invest in the UK capital, focusing on developing housing and infrastructure, both of which will improve the quality of life for London communities.
The three entities are expecting to jointly target an allocation of several hundred million pounds to this new investment strategy, which is planned to launch later in the year.
The trio announced that the fund’s portfolio will focus on investments in the City of London, the 32 London boroughs and their immediate surrounds, in assets such as residential property – specifically build-to-rent – and affordable housing, community regeneration projects and infrastructure, including digital infrastructure and clean energy.
Each of these assets will be selected to provide sustainable, long-term and risk-adjusted value to the pension scheme members, while creating a ‘double bottom line’ by making a positive contribution to social and environmental issues in the area, they said.
A spokesperson for The London Fund said that through the collaborative efforts of the three institutions, the fund is expected to benefit from increased scale.
“This allows us broader access to resources and a much wider investment pipeline than would be available to any of the individual organisations acting alone,” the spokesperson added.
The fund, which will have a closed-ended structure, will be managed in partnership between LPP Investments (LPPI) and LCIV.
By pooling their resources, LPPI and LCIV expect to have access to a greater range of investment opportunities for The London Fund than would be available to either entity acting alone.