UK's industry-backed Pensions Infrastructure Platform makes its first investment

Out-Law News | 15 Apr 2014 | 10:35 am |

The PIP Equity Fund, the first investment fund set up by the UK industry-backed Pension Infrastructure Platform (PIP), has completed its first investment, according to reports.

According to Dalmore Capital, which manages the fund, the PIP has purchased part of a nearly 50% stake in a holding company for private finance initiative (PFI) assets from construction company Interserve's pension fund. The portfolio includes interests in education, healthcare, defence and accommodation projects. The PIP will share the investment with the Dalmore Capital Fund II, according to a statement from Dalmore.

The PIP Equity Fund is the first pooled infrastructure fund for pension funds in the UK, and is expected to invest at the low-risk end of the infrastructure asset spectrum. Seven institutional investors including the Pension Protection Fund (PPF), British Airways Pensions and the Strathclyde and West Midlands Pension Funds committed £260 million to the fund, which will be capped at £500m, at its first financial close.

"It is great news that the PIP has been able to make this investment into low risk, index-linked investments so quickly after reaching first close," said Joanne Segars, chief executive of industry body the National Association of Pension Funds (NAPF).