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PIP infrastructure fund completes first equity investment

02 December 2016

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The PIP Multi-Strategy Infrastructure Fund (MSIF) has acquired a portfolio of 31 individual wind turbines.

The acquisition marks an important milestone for Pensions Infrastructure Platform (PIP) because it is the fund's first equity investment.

PIP acquired the turbine portfolio from Golden Square Energy, a leading renewables business, and the turbines are at various sites across the UK.

Mike Weston, PIP chief executive, said the acquisition is another landmark in the organisation's development: "We are pleased to be able to work with Golden Square Energy and our advisors on this transaction, which provides pension scheme investors with the secured, long-term, inflation-linked cash flows they are seeking to support their accrued pension payment obligations."

"Revenue from the acquisition, combined with guaranteed availability under long-term contracts, will provide investors with 20 years of inflation linked cash flows," he added.

Following the deal, MSIF plans to continue to build on the investment, and its previous investment grade, inflation linked debt refinancing transaction, to deliver a broadly diversified portfolio of UK infrastructure assets for its pension scheme investors.

Baiju Devani, investment director at Golden Square Energy, said: "We are delighted to have worked with PIP to complete this transaction.

"The venture was established with the objective of developing and operating high quality renewables projects which bring value to the UK economy and our investors.

Achieving endorsement from a major institutional investor such as PIP is testament to the quality of the portfolio and our commercial relationships."

Dr Barbara Weber, founding partner of B Capital Partners, the acquisition advisors, says: "PIP's direct equity investment in this low-risk portfolio demonstrates the attractiveness to institutional investors of controlling key parameters such as holding period, leverage and contractual structures, which strongly influence the risk-return level of any given investment."

PIP is a dedicated infrastructure investment manager, which was established by pension schemes, for pensions schemes, to facilitate long-term investment into UK infrastructure.

First published 02.12.2016

Lindsay.sharman@wilmingtonplc.com