On the go: Local Government Pension Scheme funds have stumped up £1.2bn towards GLIL Infrastructure for investment in UK infrastructure.
The fundraise, which represents a record level since the fund was launched in 2015, takes the fund’s total committed capital to £3.63bn.
GLIL has invested £2.1bn so far into a range of infrastructure assets, including renewable energy production, energy transition infrastructure and water.
It has 13 investments including equity stakes in Anglian Water and Clyde Wind Farm. GLIL recently secured a majority investment in Invis Energy’s portfolio of 11 onshore wind farms, which provides around 11 per cent of the Republic of Ireland’s installed wind capacity.
Contributors to the most recent fundraising round include the Greater Manchester, Merseyside and West Yorkshire pension funds, known collectively as Northern LGPS, along with the Lancashire County Pension Fund, Royal County of Berkshire Pension Fund and the London Pensions Fund Authority, which make up Local Pensions Partnership Investments.
Workplace pensions provider Nest also participated in the fundraise.
The government is keen for pension funds to support its levelling up agenda through deploying capital in UK infrastructure.
In February, it set out plans for LGPS funds to outline how they could invest up to 5 per cent of their assets in domestic initiatives, garnering criticism from some schemes.
In March, the government said that it would legislate to help schemes invest in illiquid assets.
Ted Frith, chief operating officer at GLIL Infrastructure, said: “Infrastructure provides an attractive risk and return profile for pension funds and connects their pensioners and investors with real value creation and some of the nation’s most exciting projects, from renewable energy to trains, and ports to schools and hospitals.”
