Pensions Infrastructure Platform to launch second fund

The institution, whose £330m debut vehicle is managed by Dalmore Capital, is hoping to get a licence to be able to invest money directly.

The UK’s Pensions Infrastructure Platform (PIP), an initiative launched by the National Association of Pension Funds (NAPF) to facilitate pension investment in infrastructure, expects to be launching its second vehicle in the coming months.

The fund would follow in the footsteps of the platform’s PPP Equity PIP vehicle, which is managed by London-based Dalmore Capital and had channelled £200 million (€253 million; $323 million) into 41 distinct infrastructure assets as at September this year.

The move would be a further step towards the institution’s eventual goal of becoming an investor in its own right by gaining a licence to deploy the money directly, a spokesperson for the PIP told Infrastructure Investor. Mike Weston, chief executive of the platform, said last week that concrete steps to kick start the licencing process would likely be made before the end of the year.

Weston was hired to spearhead the PIP at the end of September, seven months after the platform launched its maiden vehicle. The platform has now collected £330 million out of its £500 million target for PPP Equity PIP.

It is backed by a number of founding investors, which include British Airways Pensions, Lloyds TSB pension schemes, the Pension Protection Fund, Railpen, Strathclyde Pension Fund and the West Midlands Pension Fund. Its ambition is to achieve an eventual size of £2 billion, a target that it hopes to reach by enlisting smaller UK pensions that would join on the same terms as its early backers.

In another development last Thursday, NAPF released a pre-election manifesto calling for the creation of a Minister for Infrastructure to help make the asset class more attractive to UK pensions as well as improve the volume and quality of infrastructure deals coming to market.

NAPF represents more than 1,300 pension funds that hold total assets worth £900 billion.