Pensions Infrastructure Platform's first fund

Pensions Infrastructure Platform's first fund

The National Association of Pension Funds (NAPF) announced details of the Pensions Infrastructure Platform’s (PIP) first fund, the PPP Equity PIP Limited Partnership that has been established by Dalmore Capital, the manager of the fund.

The fund has a hard cap of £500m, of which £260m has been committed. Further fund-raising from other pension schemes will now commence. Additional funds will form part of the PIP in due course.

Joanne Segars, chief executive, NAPF, said: “This is a major milestone for the PIP and fantastic news for all UK pension schemes that have an interest in infrastructure investment. Investments will be targeted at meeting the PIP’s original aim to make infrastructure work for pension funds, offering investors a low-risk, long-term investments providing inflation-linked cash flows.”

The chief secretary to the treasury, Rt Hon Danny Alexander MP said that infrastructure is the backbone of a strong economy and invest was required to build the modern UK economy of the future. “It’s great news that the NAPF and its founding investors are starting to use this unique model. This is just the start and I urge other Pension Funds to step up and take advantage of the opportunity to match their interests with long-term infrastructure investments," he added.

Alan Rubenstein, chief executive, Pension Protection Fund, said: “Historically, it’s been difficult for pension funds to invest in infrastructure in a concerted, cost-effective or long-term manner - the PIP marks a change in that.”

Michael Ryan, chief executive, Dalmore Capital Limited, said: “Infrastructure can present a solid investment choice for pension schemes. There is significant diversity within the infrastructure asset class, and infrastructure assets are uncorrelated with traditional asset classes such as equities.”

Founding Investors for this first close of this phase of the PIP PPP Equity Fund, include: British Airways Pensions, Pension Protection Fund, Railways Pension Scheme, Strathclyde Pension Fund and West Midlands Pension Fund.

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