Infrastructure platform reaches £1bn

Infrastructure platform reaches £1bn

A business focused on investing in UK infrastructure for pension funds has secured more than £1bn in commitments.

Mike Weston, chief executive of the Pensions Infrastructure Platform, said approximately £500m had been raised for the Dalmore PPP Equity Pip Fund, followed by £370m in another co-investment alongside Dalmore Capital and £130m for the Aviva Investors Pip Solar Photovoltaics Fund.

Mr Weston said: “Historically it has been difficult and expensive for individual pension funds to invest in infrastructure on their own and the PiP was set up to change this by providing another, better, option for infrastructure investing.”

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Pip was established by the National Association of Pension Funds and nine pension funds.

It is owned by Napf, and seeks long-term cash returns of RPI plus between 2 and 5 per cent. It has no minimum commitment and Pip’s target size is £2bn.

In June, PensionsEurope, which represents national associations of pension funds and similar institutions for workplace pensions, published the six-page paper How Pension Funds Contribute to Jobs and Growth in Europe – and how to Strengthen their Participation in the Capital Markets Union.

The paper looked at how the flow of pension fund capital to European infrastructure projects and other parts of the economy could be boosted.