LGPS pool Border to Coast has launched private equity and infrastructure investment opportunities, with commitments of more than £1bn from its member funds.
The pool has announced the portfolios, which are the first in the private markets sector, which is, according to a statement, expected to grow to more than £10bn in the longer term.
Border to Coast chief investment officer Daniel Booth said: “I am grateful to Mark Lyon, our head of alternatives, and the wider Border to Coast team, for their hard work and dedication in setting up our alternative investment platform in such a tight timeframe, which will allow us to begin investing into the exciting range of opportunities we are currently reviewing.”
Eight member funds have committed £500m to the private equity offerings, which will see external managers invest in a global equity portfolio across buyout, special situations, growth and venture strategies.
The infrastructure offering already has £675m of commitments from 10 partner funds.
The cash will be invested over the next nine months as part of a programme to provide a diversified global infrastructure portfolio across core, core+ and value add/opportunistic strategies, according to the pool.
Border to Coast said that detailed due diligence has commenced on a number of suitable investment opportunities and that investments will begin over the summer.
Going forward, partner funds are expected to make similar commitments across both private equity and infrastructure categories on an annual basis into the medium term, according to a statement.
Capital will be deployed in the 12 months following each annual commitment, subject to asset allocation decisions by the partner funds and the availability of suitable investments.
A statement by the pool said: “The key aims of the private markets structure are to enhance risk-adjusted, net of fees returns for our investors through economies of scale, increased resources for due diligence, and access to a wider range of investments.
“We have developed a robust investment process incorporating principles of responsible investment, through which we hope to develop longer-term relationships with key industry participants to enable partner funds to collectively benefit.”
Last month, Border to Coast launched a request for proposals for its sterling investment grade credit mandate.
Separately, it also announced it had appointed four asset managers to a global equity fund expected to total £4.5bn at launch.
Harris Associates, Investec Asset Management, Lindsell Train and Loomis, Sayles & Company were selected after more than 90 asset management firms submitted proposals.
