The Pension Infrastructure Platform (PIP) has closed the first tranche of its Multi-Strategy Infrastructure Fund, having raised £125m. Over the fund’s five-year investment period, it will buy and build a diversified portfolio of 15 to 20 UK infrastructure assets, including renewable energy assets. The fund operates without leverage, to maintain a low risk profile.
PIP was set up after the chancellor called for more pension funds to invest in infrastructure in 2011/12. That was when the National Association of Pensions Funds (NAPF) and the Pension Protection Fund (PPF) said they would facilitate pension funds working together. The country’s largest pension funds agreed to collaborate as long as all investments fit the following criteria: UK-only; no economic sensitivity; inflation-linked cash flows and a return of RPI plus 2-5%; and low fees.
PIP’s Multi-Strategy Infrastructure Fund (MSIF) invests directly into UK infrastructure, targeting housing, hospitals, schools, flood defences, communications, utilities, renewable energy and transportation. MSIF is open to all UK pension schemes and has a low minimum investment hurdle to allow smaller schemes to participate. The Fund is a sterling denominated, closed-end Scottish limited partnership.
Related content: “Pension schemes are ready and willing and we can move fast. Energy asset owners should come and talk to us.” The New Power Interview: Mike Weston, Chief executive, Pensions Infrastructure Platform (subscribers only)