UK pension invests £30m in GIP’s second infra fund

The £1bn Shropshire County Pension Fund has allocated 3 percent of its total portfolio to its debut infrastructure investment – a £30m commitment to Global Infrastructure Partners’ second infrastructure fund, which is seeking to raise between $5bn and $6bn.

England’s Shropshire County Pension Fund – located in Shrewsbury, near the Welsh border – has committed £30 million (€35 million; $49 million) to Global Infrastructure Partners’ (GIP) second infrastructure fund, a spokesperson from the pension told Infrastructure Investor.

The allocation, corresponding to about 3 percent of the pension’s £1 billion portfolio, is Shropshire’s first infrastructure investment, the spokesperson said. The commitment to infrastructure came after the pension reduced its overweight allocation to UK equities. 

Shropshire is proposing to pay GIP around £525,000 in annual management fees, although the spokesperson stressed this amount should be viewed as a reference, as fees will vary according to GIP’s performance. 

GIP was not available to comment on the Shropshire investment at press time. The New York-headquartered independent infrastructure fund manager is reportedly seeking to raise around $5 billion to $6 billion for its second global infrastructure fund. 

GIP has acquired several UK assets out of its first, $5.64 billion fund – now close to being fully invested – including investments in the waste, ports and airports sector. The fund famously bought London’s Gatwick Airport in 2009 for £1.5 billion.