The Pensions Infrastructure Platform (PiP) has held the first close of its PiP Multi-Strategy Infrastructure Fund (the Fund) with GBP125 million of pension scheme investor commitments.
The Fund will invest directly in UK infrastructure with the objective of producing the stable, long-term inflation-adjusted yields required by pension schemes to meet their long-term pension payment liabilities. Pension schemes will benefit from transparent, low-cost fees that reflect the true cost of operation.
The Fund has a minimum commitment of GBP1 million that allows schemes of any size, including the smallest, to invest and still share the same terms with all other investors. There is also a co-investment programme that allows larger investors to achieve even further benefits of scale.
Mike Weston, Chief Executive, PiP, says: “Reaching first close of our first fund is another key step in the development of PiP. The Founding Investor pension schemes, which have supported PiP from its establishment, have now achieved their objective of providing pension schemes of all sizes with an efficient route to direct ownership of infrastructure assets to enable greater access to infrastructure investment.
“This first close demonstrates that investors believe PiP works and is delivering on its promise. The Founding Investors have trusted the PiP team to use a portion of their scheme assets to source and take direct ownership of UK infrastructure assets on their behalf.
“With the support of our Founding Investors we’ve already mobilised GBP1 billion for investment into UK infrastructure. This first close, and the acquisition of infrastructure assets that will follow, demonstrates that PiP is a credible force in UK infrastructure investing.”
Isabel Liu, Non-Executive Director, PiP, says: “PiP was established by pension schemes for pension schemes and with the first close of its Multi-Strategy Infrastructure Fund is now demonstrating its ability to buy and own infrastructure assets on their behalf. This is fantastic news for UK pension schemes of all sizes and their sponsoring employers.
“First close of the PiP Multi-Strategy Infrastructure Fund is evidence that PiP offers a better way for pension schemes to invest in UK infrastructure.”