On the go: The £36bn Border to Coast Pensions Partnership has announced it has completed the final £1.5bn of investment within its first private market offering since its launch in 2019.
With this final investment, the pool — which handles the assets of 11 Local Government Pension Scheme funds worth a collective £55bn — has now committed all £5.7bn of its initial three-year private markets programme.
The programme contained three one-year tranches worth £1.2bn, £1.8bn and £2.7bn, respectively. These commitments were spread across infrastructure (£2.5bn), private equity (£1.7bn) and private credit (£1.5bn).
Of the final £1.5bn investment, BCPP invested £307mn in infrastructure, £915mn in private credit, and £232mn in private equity funds.
This allocation included two new co-investments: a £60mn commitment alongside KKR in John Laing Group, and a $68mn (£57.3mn) commitment alongside DigitalBridge into Vertical Bridge Reit.
In total, the programme has invested in 61 funds and made three co-investments.
According to BCPP, the programme has delivered fee reductions of around 24 per cent, while providing access to a wide range of investments, including specialist sectors and managers.
“The success of our private markets programme is a prime example of the benefits pooling offers.
“It has delivered cost-effective access to investments that our partner funds in the LGPS may not have otherwise been able to access, and which offer the potential for attractive long-term, risk-adjusted returns.”
In April 2022, the pool launched its second private markets programme with initial partner fund commitments of £4.1bn, taking the total size of its proposition to date in this asset class to almost £10bn.
This article originally appeared on MandateWire.com
