The £46bn Border to Coast Pensions Partnership has launched its private credit offering and announced its initial investments in private equity and infrastructure.
The Local Government Pension Scheme (LGPS) authority pool is one year ahead of schedule with the launch, which pledges £1.8bn of commitments in the next 18 months.
The full private markets offering comes one year ahead of schedule which Border to Coast termed an "important step" in improving outcomes for its LGPS partner funds.
It will see to enhance risk-adjusted, net of fees returns from private market investments using responsible investment principles.
The new private credit launch follows Border to Coast's securing of £581m from eight partner funds. The commitments will be invested in the period to 31 March 2021 as part of a programme to provide a diversified global private credit portfolio over the long-term.
On the infrastructure side, the local authority pool has secured £675m of commitments from ten partner funds, which was used for its first offering in July. Investment will continue until 31 March 2020 with Border to Coast having already made a $125m commitment to the Brookfield Infrastructure Fund IV and a $60m commitment to the Global Infrastructure Partners Fund IV.
On the private equity front, Border to Coast secured a £500m private equity offering in May alongside eight partner funds targeting a diversified global portfolio across buyout, special situations, growth and venture strategies. These commitments will be invested between now and 31 March 2020 and are expected provide exposure to a number of Border to Coast's targeted themes within private equity including healthcare and technology.
Border to Coast chief investment officer Daniel Booth said: "We are very pleased with the level of engagement from industry participants following the launch of our private markets offerings and the openness and transparency of managers on which we have conducted due diligence.
"We have engaged with a number of high-quality managers and look forward to developing these relationships further. We very much appreciate the confidence shown in Border to Coast by our partner funds, with larger-than-anticipated commitments."
The pool manages assets for 12 partner local authority funds: Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, Northumberland, North Yorkshire, South Yorkshire, Surrey, Teesside, Tyne & Wear, Warwickshire.
RPMI Railpen has made a direct investment into an Ayrshire-based windfarm currently under construction.
Return-driven investment strategies can deliver a better match for scheme-specific return targets via a more diversified and liquid portfolio, argues Gavin Orpin.
QMA’s Global Multi-Asset Solutions Group shares their ten-year capital market assumptions for the fourth quarter of 2019.
Seven local authorities have already committed to investing in a fund designed to help pension funds source social investments. Holly Roach reports
BlackRock has been appointed as the fiduciary manager for the UK Power Networks Group of the Electricity Supply Pension Scheme (ESPS).