The National Association of Pension Funds (NAPF) today (Wednesday) announced details of the Pensions Infrastructure Platform’s (PIP) first fund. The PPP Equity PIP Limited Partnership has been established by Dalmore Capital Ltd who will act as 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:
“Infrastructure is the backbone of a strong economy and we must invest 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."
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. Today’s announcement is testament to the hard work that has gone into making this platform a reality and the PPF is very proud to be part of it.”
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 equities. Dalmore has extensive expertise in infrastructure investment and we are very pleased to be able to put this to work on behalf of a project as innovative and valuable as the PIP.”
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.
Notes to editors:
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
The PIP is a not-for-profit, infrastructure fund, by pension funds and for pension funds, aligned to the long-term interests of the UK pension funds who will be its main investors. This is the first time UK pension funds have combined to create such a financial entity in the UK. Key features of the PIP are:
- Target size of £2bn
- Low fees, c50bps
- Low risk, the PIP is expected to invest at the low-risk end of the infrastructure asset spectrum
- Long-term cash
Dalmore Capital Limited is an independent fund manager formed in 2009 by a highly experienced team of partners who have been actively investing in the UK infrastructure market since 1998. Dalmore currently manages and advises on investment vehicles with aggregate assets under management of over £430 million, making it one of the most prominent managers focused on UK infrastructure.
The Dalmore Capital investment team has extensive experience in infrastructure investment. The senior team has a total of over 100 years of relevant experience in equity investment (both as financial and industry investors), debt financing, and financial advisory.
A Dalmore Special Purpose Vehicle will act as GP of the fund.
Pensions Infrastructure Platform Limited (PIP Limited) will continue to facilitate the development of the PIP. PIP Limited is a company limited by guarantee, which is presently wholly owned by National Association of Pension Funds Limited (NAPF Ltd).
The PIP now has seven founding investors, including: British Airways Pensions, Lloyds TSB, Pension Protection Fund, Railways Pension Scheme, Strathclyde Pension Fund and West Midlands Pension Fund.
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