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Pensions Infrastructure Platform's first fund
04 March 2014
PIP PPP equity fund raises £260m, hard cap £500m
Pensions Infrastructure Platform
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
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.