The Pensions Infrastructure Platform (PiP) has received full authorisation from the Financial Conduct Authority (FCA), it announced today.
The vehicle is now officially recognised as an alternative fund manager, able to directly manage assets on behalf of pension schemes.
PiP chief executive Mike Weston (pictured) said the platform had committed £1bn to UK infrastructure to date, half way to its original target of £2bn.
He added: “PiP initially established itself in the market by partnering with other fund managers, but FCA authorisation provides the foundation for the next stage in our growth – the launch of our first multi-strategy infrastructure investment fund managed internally by PiP, which will aim to provide the long-term, low risk, inflation-linked cashflows that UK pension schemes continue to seek.
“Authorisation marks a fantastic start to 2016 for PiP which we are confident will further encourage and facilitate investment in infrastructure from UK pension schemes, both large and small, corporate and public sector.”
The Pension Protection Fund (PPF) was one of the founding investors. Chief executive Alan Rubenstein said: “We are delighted to see PiP reach this important milestone in its development. We look forward now to the formal launch of PiP’s multi-strategy fund.”
PiP chairman Joanne Segars added: “PiP was established by pension schemes for pension schemes of all sizes to invest in infrastructure, and we are thrilled at the progress PiP’s made. We are looking forward to the next phase of PiP’s development to become the fully-fledged infrastructure investment manager originally envisioned by the founding investors.”
Eight schemes are signed up as founding investors: British Airways Pension Scheme, the PPF, Railways Pension Scheme, Strathclyde Pension Fund, West Midlands Pension Fund, Lloyds TSB Group Pension Schemes, BT Pension Scheme and one unnamed investor.
So far the PiP has committed to three investments: £510m to a PPP fund managed by Dalmore Capital, £131m to a solar PV fund managed by Aviva Investors and £370m as part of a consortium with Dalmore for the Thames Tideway Tunnel project.
The announcement comes as UK local government pension schemes (LGPS) are increasing collaboration in response to the government’s LGPS pooling agenda to create six British Wealth Funds of around £30bn each, announced by Chancellor George Osborne in the last Budget.
The London Collective Investment Vehicle, which is targeting collaboration between the capital’s 33 borough’s pension schemes, received FCA authorisation in November last year.
Elsewhere, the London Pensions Fund Authority (LPFA) and Lancashire Pension Fund are awaiting FCA authorisation for their £10bn partnership, the London and Lancashire Pensions Partnership (LLPP).
Comments