The Pension Infrastructure Project (PIP) has unveiled ambitious growth plans for the next four years in an effort to boost infrastructure spending among UK pension funds.
The PIP, backed by the National Association of Pension Funds and a number of major UK pensions, yesterday unveiled an innovative solar power fund and announced its intention to construct a multi-strategy infrastructure product once it has full authorisation from the UK financial regulator.
The organisation is on the hunt for an investment director, a head of risk, and analysts to build up an in-house team to assess direct transactions for the multi-strategy portfolio.
PIP CEO Mike Weston added that the assets targeted by the multi-strategy fund would be in areas also favoured by insurance companies, meaning that assets would be directly transferable during a buy-out transaction. The fund will consider direct and indirect equity and debt investments for a long-term, “buy and hold” strategy.
While the group’s in-house capability is being built, Weston emphasised that the PIP was “open for business”, with a fund specialising in public-private partnership contracts managed by Dalmore Capital already up and running. This fund already has £255 million invested by large backers including the Pension Protection Fund and the West Midlands Pension Fund.
The solar fund, run by Aviva Investors, has a hard cap of £250 million and invests in portfolios of solar panels on primarily residential properties.