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PiP launches UK multi-strategy infrastructure fund

PiP launches UK multi-strategy infrastructure fund


The Pensions Infrastructure Platform (PiP) has launched the PiP Multi-Strategy Infrastructure Fund (the fund) with a target size of GBP1 billion. 

The fund will invest directly in UK infrastructure and aims to provide institutional investors with a degree of alignment and transparency, PiP believes, is not available elsewhere in the market today. The fund will also offer a co-investment programme for larger investors to allow them to achieve even further benefits of scale. In order for smaller pension schemes to participate, the fund will have a minimum commitment size that effectively allows schemes of any size to invest and still share the same terms with all other investors. This aligns the fund with one of PiP’s core principles of being open to all pension schemes, regardless of size or ultimate sponsor. 
 
The fund will focus on core UK infrastructure, targeting transportation; (renewable) energy; utilities; communications; housing; and social infrastructure, and have a long-term buy-and-hold investment strategy to generate low risk, inflation-linked cash flows. Investors can achieve their preferred investment exposure through the co-investment programme and the fund’s sub-portfolios, which have different risk/return characteristics. 
 
Mike Weston, Chief Executive, PiP, says: “The launch of the fund is further proof that investors believe that PiP works and is delivering on its promise. With the support of our Founding Investors we’ve already mobilised GBP1 billion for investment into UK infrastructure and with this fund we are achieving our key objective of providing pension schemes of all sizes with an efficient route to direct ownership of infrastructure assets.  
 
“We are a true long-term investor and this is reflected in the way we build our relationships with both our investors and developers – allowing us to secure the long-term, low-risk, inflation-linked cash flows that pension schemes need. And because we’re backed by pension schemes and understand their needs, we have been set up and structured to meet these needs in the best possible way.” 
 
Alan Rubenstein, Chief Executive, Pension Protection fund, Founding Investor, says: “Pension funds have long been attracted by the long-term, low-risk, inflation-linked cash flows that infrastructure can offer. PiP provides an opportunity to invest in a way specifically designed for pension funds, and being effectively owned by its investors’ means success will be shared success.” 

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