Dalmore’s PIP fund climbs over £500m

The fund, being managed on behalf of the Pensions Infrastructure Platform, is expected to be fully committed within 18 months.

Dalmore Capital, the London-based fund manager, has increased commitments to its PPP Equity PIP fund to more than £500 million (€694 million; $751 million).

The fund, which is the first to have been launched from the Pensions Infrastructure Platform (PIP) initiative, has a target size and hard cap of £600 million and final close is expected during the third quarter of this year.

A statement said the fund had attracted seven new limited partner investors recently. At the time of an Infrastructure Investor interview with PIP chief executive Mike Weston for our December/January issue, he said the fund had raised around £350 million at that point.

The fund, which targets operational UK public-private partnership (PPP) assets, has so far made 42 investments totalling £255 million and is expected to be fully committed within the next 12 to 18 months. With a long-term hold strategy, the fund has a 25-year life.

“Institutional investors are increasingly attracted to the long-term index-linked yield returns that we can offer,” said Michael Ryan, chief executive of Dalmore Capital, in the statement. “PPP Equity PIP has the advantage of an established portfolio of investments which provide immediate draw down and early income.”

PIP was launched in 2011 as a National Association of Pension Funds (NAPF) initiative designed to provide UK pensions with access to low-fee (around 50 basis points), low-risk, long-term cash return infrastructure investments.

In February this year, PIP launched its second fund in partnership with Aviva Investors. The fund, which has a £250 million target, will focus on small-scale rooftop solar in the residential and commercial sectors.

PIP is expected to manage the third fund itself, providing its application to the UK’s Financial Conduct Authority to obtain permission to manage funds is successful.