The London Pension Fund Authority and Greater Manchester Pension Fund’s joint venture for infrastructure investing has been boosted with three new public sector investors.
The collaboration brings together the Local Pensions Partnership (LPP) and Northern Powerhouse local government pension scheme pools, which are working on plans to pool assets more broadly.
The two pools were in talks to combine their efforts across all asset classes, but this plan was abandoned during the summer.
In a statement, the LPP said: “The expansion allows GLIL Infrastructure access to a greater pool of financial commitments and investment expertise from its five contributing funds, cementing it as a significant and serious investor in the UK infrastructure market.”
The planned link-up was first reported in February, but today marks the first official confirmation.
The funds have previously stated their intention to raise infrastructure allocations to 10% of each pension fund’s portfolio.
The £35bn Border to Coast pool of 12 pension funds is also said to be in talks to join the infrastructure joint venture.
Increasing public pension funds’ investments in infrastructure is a cornerstone of the UK government’s asset-pooling project.
Each of the eight LGPS pools has been specifically told to factor in infrastructure investment to their plans.
- Asset Allocation
- Greater Manchester Pension Fund
- Investor Strategy
- Lancashire County Pension Fund
- Local Government Pension Scheme (LGPS)
- Local Pensions Partnership
- London Pensions Fund Authority
- Merseyside Pension Fund
- Royal County of Berkshire Pension Fund
- United Kingdom
- West Yorkshire Pension Fund