An infrastructure platform set up by a group of UK pension funds has launched a new multi-strategy fund, investing across all sub-sectors of UK infrastructure.

Pensions Infrastructure Platform (PiP) has set a target size of £1bn for the vehicle, which will invest in transport, renewable energy, housing and utilities with a long-term outlook.

Founding investors include British Airways Pensions, Lloyds TSB, Strathclyde Pension Fund and West Midlands Pension Fund.

Smaller schemes can also participate as the fund has a minimum commitment size, effectively allowing pension funds of any size to invest and still share the same terms with others.

“There’s a huge opportunity in UK infrastructure at the moment,” said Geik Drever, strategic director of pensions at West Midlands Pension Fund.

“We believe there’s room in the market for a transparent platform where pension funds can invest together at scale to make the most of this opportunity.

“The PiP Multi-Strategy Infrastructure Fund opens the door to this opportunity for pension funds of all sizes.”

In basic terms PiP acts as a mechanism to bring pension schemes together that led to negotiations with the asset managers to make infrastructure opportunities attractive enough.

The UK Treasury has spent four years trying to get a national PiP off the ground.

It recently passed £1bn in funding compared to an initial £20bn goal suggested by the Chancellor George Osborne.