The UK's Pensions Infrastructure Platform (PiP) has reached the first close of its PiP Multi-Strategy Infrastructure Fund after £125m in pension scheme investor commitments.

With a minimum commitment of £1m, the fund is designed to permit even the smallest of pension schemes to invest on the same terms as their larger counterparts.

The fund will invest in UK infrastructure directly, seeking the stable, long-term inflation-adjusted yields that typically attract pension scheme investments. PiP intends to keep fees low and transparent, reflecting the true cost of operation.

Targeting low-risk infrastructure assets, the fund is aiming for a total investment of £1bn, with index-linked cash flows of RPI +0-2% and RPI +2-5%, depending on the investment strategies of individual pension schemes.

“With the support of our Founding Investors we’ve already mobilised £1 billion for investment into UK infrastructure,” said Mike Weston, PiP’s chief executive. 

“This first close, and the acquisition of infrastructure assets that will follow, demonstrates that PiP is a credible force in UK infrastructure investing.”