The investment vehicle of the UK’s £12.5bn (€14.5bn) Local Pensions Partnership (LPP) has tendered a diversified credit mandate of up to £300m via IPE Quest.

According to search QN-2345, LPP Investments (LPPI) is looking to award a global mandate of £150m-£300m to one or more managers.

The desired mandate will incorporate an unconstrained multi-asset credit strategy with a target gross return of cash plus 4%-6% over a full market cycle.

Volatility should be restricted and the mandate should offer weekly liquidity, which can be gated.

The investor – a collaboration between the London Pensions Fund Authority and Lancashire County Pension Fund – has not set a minimum for assets under management for the asset class or the manager.

However, interested parties should have a track record of at least three years – although a minimum of five years is preferred.

Applicants should state performance gross of fees to 30 June, and submit applications by 6 September, 5pm UK time.

The search for diversified credit managers comes after LPP launched its third pooled fund, a global infrastructure fund, in July. At the time it said it planned to launch credit, fixed income and total return funds “in the coming months”.

The infrastructure fund was slated for a final close in September, with LPP having said it expected to raise more than £1.5bn by then.

LPP launched its first joint fund, pooling its two member funds’ global equity allocations, in November 2016, and then launched a private equity pooled fund in April.

The IPE news team is unable to answer any further questions about IPE Quest, Discovery, or Innovation tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email jayna.vishram@ipe-quest.com.