Border to Coast makes first co-investment in infrastructure

Border to Coast Pensions Partnership has committed £540 million to six new infrastructure funds, including its first co-investment.

The six new investments are part of its second infrastructure offering, which received £760 million of commitments from 10 of its partner funds in April 2020 – 70% of which is now committed.

Since launch, Border to Coast has secured £3 billion of private market commitments from its partner funds.

The six investments include a $100 million allocation to Latin American-focused Patria Infrastructure Fund IV, and $150 million to I Squared Global Infrastructure Fund III which focuses on Core+ / Value Add investments across global mid-market and large cap companies.

The investment pool also made its first co-investment, a minority stake in a 39-megawatt straw-fired combined heat and power plant in Sleaford, Lincolnshire.

Mark Lyon, Head of Internal Management at Border to Coast said: “Thanks to our collective size and our in-house expertise, we have been able to access high quality investment opportunities, including our first co-investment, whilst generating significant collective fee savings for our investors over the long term.”

Border to Coast’s private markets structure was originally launched in May 2019 to capture the key benefits of pooling for its LGPS Partner Funds. The aim is to enhance risk-adjusted, net of fees returns from private market investments over the long term.