The London Fund secures one third of its £300m targeted offering
The London Fund has completed its first close after securing £100m investment from the London Pensions Fund Authority towards its £300m targeted offering.
The London-focused investment fund - set up by Local Pensions Partnership (LPP) Investments, London CIV and the London Pensions Fund Authority (LPFA) - is set to focus on developing residential property and affordable housing as well as community regeneration, digital infrastructure, and clean energy to improve the quality of life for London communities.
These assets will be selected to provide sustainable, long-term and risk-adjusted value to the pension scheme members, while making a positive contribution to social and environmental issues in the area.
LPP Investments is the investment manager and London CIV is the alternative investment fund manager. By pooling their resources, the fund partners expect to have access to a greater range of investment opportunities for The London Fund than would be available to either entity acting alone.
Further material commitments from several London CIV client funds could see a second close in 2021 to bring the fund to capacity.
LPFA chief executive (CEO) Branagh said: "As responsible investors working for our communities, the opportunity to invest in London in a way that will directly benefit Londoners, is a perfect match. We firmly believe that we can contribute to society as well as provide attractive returns to support the pensions of our members."
LPP Investments CEO Chris Rule and London CIV CEO Mike O'Donnell added: "We are pleased to be part of one of the first partnerships between local government pension scheme pool companies, bringing together investment, risk management and stewardship expertise. It's a great example of local government pension schemes working together to deliver attractive risk adjusted returns with an ESG focus that provides real benefits to Londoners.
"As the nation and London recover from the impact of Covid-19, we look forward to delivering positive financial and social outcomes through the launch of The London Fund."
More on Investment
Nest bulks out portfolio with mega infrastructure deals
Nest has announced two infrastructure partnerships which will see the asset class make up 5% of its total portfolio.
Exclusive: Trustees trapped by base level analysis choosing fiduciary managers
The likelihood of trustees making incorrect decisions when choosing a fiduciary manager due to rudimentary performance metrics remains probable, EY says.
Industry Voice: How Schroders are measuring the social and environmental impact of countries
Andrew Howard, Global Head of Sustainable Investment, explains how Schroders have further developed their proprietary impact measurement tool SustainEx™ to cover impact at a country level, looking at national externalities and countries’ contributions to shared global problems and benefits.
Industry Voice: Three principles for solving the diversification dilemma
Finding the right asset mix for long-term investment goals.
LGPS Central launches multi-asset credit fund
LGPS Central has launched its £680m multi-asset credit (MAC) fund with initial buy-in from four local authority partner funds.
