The Local Pensions Partnership (LPP), the asset pooling arrangement created by the Lancashire County Pension Fund and the London Pensions Fund Authority, has set up a new private equity (PE) structure.
The new structure will put £1.8 billion in PE assets from both shareholder funds under the management of LPP Investments (LPPI), a fully-owned subsidiary of LPP, after receiving FCA accreditation. LPPI can also manage PE investments for other funds. LPP’s PE strategy aims to produce long-term returns by investing in companies throughout the growth strategy.
LPP chief executive, Susan Martin, commented: “We’re delighted to have taken our next step in the pooling process, especially so quickly after launching our equity fund in November last year. Over the next few months we will continue to launch more funds and structures with infrastructure, total return, fixed income and credit in the pipeline. As a not-for-profit pension services organisation, LPP is implementing an effective investment management structure that helps to deliver cost savings and investment benefits to our clients, their employers and scheme members.”
LPP launched a £5 billion global equity fund in November 2016, which it says has cut £7.5 million a year in costs for its founding investors.