Local Pensions Partnership Investments, London CIV and the London Pensions Fund Authority have announced the first close of an investment fund focused on developing housing and infrastructure in the capital.
The London Fund secured an initial £100 million commitment from London Pensions Fund Authority (LPFA), towards a targeted £300 million.
The fund’s portfolio will focus on investments in the City of London Corporation, the 32 London boroughs and their immediate surrounds, in assets such as residential property – specifically build-to-rent – and affordable housing, community regeneration projects and infrastructure, including digital infrastructure and clean energy.
Each of these assets will be selected to provide sustainable, long-term and risk-adjusted value to the pension scheme members, while also making a positive contribution to social and environmental issues in the area.
Further material commitments from several London CIV client funds could see a second close in 2021 to bring the fund to capacity.
Robert Branagh, chief executive of the LPFA, said: “As responsible investors working for our communities, the opportunity to invest in London in a way that will directly benefit Londoners, is a perfect match. We firmly believe that we can contribute to society as well as provide attractive returns to support the pensions of our members.”
Local Pensions Partnership Investments is the investment manager and London CIV is the alternative investment fund manager.
By pooling their resources and networks, Local Pensions Partnership Investments and London CIV expect to have access to a greater range of investment opportunities for the London Fund than would be available to either entity acting alone.