The Local Pensions Partnership (LPP) has launched a new pooling private equity fund.
The new structure brings the £1.8bn of private equity assets invested in two shareholder funds – the London Pensions Fund Authority and Lancashire County Pension Fund – together under the management of LPP Investments (LPPI).
LPP’s plans for LPPI go beyond managing its own private equity assets. The organisation also established LPPI to act as an FCA-authorised investment manager, so that it can manage private equity investments for other funds.
The private equity strategy set by LPP is to achieve long-term investment returns by investing in companies at various stages of the growth cycle, such as buy-outs or special situations.
LPP chief executive Susan Martin said this is the next step in the organisation’s pooling process, which comes so quickly after November’s equity fund launch.
She added that new funds and structures will be launched in the next few months. Infrastructure, total return, fixed income and credit funds are 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,” Martin said.
