GLIL Infrastructure – an investment vehicle backed by the local government pension scheme (LGPS) and some defined contribution funds – has raised an additional £475m from its members for further investment in UK infrastructure.
It takes the open-ended investment fund’s total committed capital to a whopping £4.1bn, of which more than £3bn has already been deployed into a diverse portfolio of assets.
These include renewable energy production and energy transition, as well as transport, water, ports, schools and hospitals.
The new capital commitments came from across all of GLIL’s LGPS fund members.
They are Greater Manchester, Merseyside and West Yorkshire pension funds, known collectively as Northern LGPS; Lancashire County Pension Fund, Royal County of Berkshire Pension Fund and the London Pensions Fund Authority, which form Local Pensions Partnership Investments. Defined contribution workplace pension provider Nest is another investor.
GLIL’s latest investments include acquiring a minority stake in Cornerstone, a mobile towers business.
In addition, a strategic partnership was signed with Bluefield Solar Income Fund beginning with the acquisition of Lyceum, a portfolio of operational solar energy assets.
The latest member commitments means GLIL builds on its track record of investing in UK infrastructure while also participating in the drive to a net-zero economy.
Ted Frith, chief operating officer at GLIL Infrastructure, said: “This latest endorsement from members, of what GLIL has achieved to date, reflects their commitment to UK infrastructure as an asset class.
“Pension funds play an increasingly important role in driving more investment into infrastructure assets, and our recent survey shows that nearly two-thirds of UK pension fund leaders expect to increase their investment in this area over the next year.”
Turning to the benefits of infrastructure investments, Frith added: “As well as offering reliable, inflation-linked returns, infrastructure investment is critical to the UK’s energy transition, supporting local communities and powering the economy.
“With the help of our LGPS members and Nest, we will be able to capitalise on a strong pipeline of new investment opportunities that provide reliable returns for many years to come.”
Stephen O’Neill, head of private markets at Nest, added: “At Nest, we’re delighted to be expanding our investments in UK infrastructure. We see fantastic opportunities to put our members’ money to work in projects right here on their doorstop, while helping grow their pension over the years to come. It’s a win-win situation.”
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