Newcore Capital and Swansea Council launch £51 million local impact fund
UK-focused social infrastructure investment manager Newcore Capital (Newcore) has been appointed general partner to a new local impact fund, The Newcore Swansea Social Infrastructure Partnership (NSSIP), launched in collaboration with Swansea Council.
NSSIP is a UK limited partnership that will deliver social infrastructure, social housing and social care, in the Swansea region. With Swansea Council – as the Administering Authority of the £3.6 billion City and County of Swansea Pension Fund – as a cornerstone investor, and with Newcore co-investing alongside, the £51 million fund will be focused towards delivering positive social outcomes for the region alongside strong, sustainable financial returns for its investors.
NSSIP will be managed by Newcore and target value-add and core-plus investments, including existing assets that can be refurbished as well as strategic land for development, income and planning opportunities.
The fund will have a 10-year life and will target an 8-10% p.a. IRR net of fees. Newcore has also voluntarily waived performance fees from the vehicle. While NSSIP has been designed in partnership with The City & County of Swansea Pension Fund, it is also structured to be open to other investors interested in improving outcomes in the Swansea region.
NSSIP will act as a separate entity to the other value-add and core-plus social infrastructure funds Newcore manages on behalf of its clients.
Newcore is currently investing on behalf of its fifth value-add fund, Newcore Strategic Situations V, which reached a final close at £190 million in 2023, with a re-up rate of 60%.
The manager also recently launched a core-plus vehicle, The Newcore Social Infrastructure Fund (NSIIF), which reached a first close this Spring with £100 million of investment capacity. NSIIF is targeting £375 million in equity commitments. Investors in NSIIF included LGPS scheme East Riding Pension Fund and The Parliamentary Contributory Pension Fund – the MPs pension scheme.
Newcore currently manages approximately £700 million across both its value-add and core-plus strategies.
Jeff Dong, Head of Finance, City and County of Swansea Pension Fund, said: “This partnership presents us with a unique opportunity to enhance and expand social infrastructure, social housing and social care provision in the Swansea City region, while generating strong and steady returns for the Swansea LGPS. After extensive due diligence of the market, we chose to partner with Newcore Capital due to its proven track record of investing successfully and conscientiously in UK social infrastructure and approach to delivering genuine positive impact and their commitment to delivering that model in the Swansea City region.”
Hugo Llewelyn, CEO, Newcore Capital, said: “We are really pleased to be partnering with Swansea Council in this local impact strategy, the aim of which is to improve the quantity and quality of social infrastructure, social housing and social care in the city region, including Port Talbot and Neath. With this partnership, we hope to provide a blueprint for how private capital can be used to address the UK social infrastructure funding gap in a sustainable manner, while at the same time delivering strong, stable returns as an investment proposition. There is a clear opportunity for local government pension schemes to commit to investments in local social infrastructure, which can deliver sustainable returns while improving the scale and quality of much-needed local services through the provision of physical assets that enable them.”
