The Pensions Infrastructure Platform has reached the first close of its PiP Multi-Strategy Infrastructure fund, with £125 million (€160 million) of pension scheme investment commitments.
The fund invests directly in UK infrastructure ventures, with the objective of producing the stable, long-term yields that meet long-term pension payment liabilities. It targets real returns of 0-2% for debt and 2-5% for combined equity/debt sub-portfolios.
Housing, social infrastructure (hospitals, schools, flood defences etc.), communications, utilities, renewable energy and transportation projects are key focuses. Investments to date include the Thames Tideway Tunnel project.
In order for smaller pension schemes to participate, the fund has a minimum commitment size of £1 million, effectively allowing schemes of all sizes to invest and still share the same terms with other investors.
A co-investment programme is offered to larger, institutional investors, aimed at offering benefits of scale. Pension funds for defence and aerospace company BAE and telecoms provider BT are among the initial investors.
PiP ultimately aims to invest at least £2 billion into UK infrastructure.
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