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PIP secures £1bn for investment into UK infrastructure

10 July 2015

Image for PIP secures £1bn for investment into UK infrastructure

The Pensions Infrastructure Platform (PIP) has secured more than £1bn of commitments from pension schemes to invest into UK infrastructure.

Since the close of the first PiP fund in February 2014, managed by Dalmore Capital, the PiP has been building momentum and over GBP 500m of commitments have been raised for the Dalmore PPP Equity PiP Fund, over GBP 130m of commitments for the Aviva Investors PiP Solar Photovoltaics (PV) Fund, and over GBP 370m in another co-investment alongside Dalmore Capital.

Mike Weston, PiP chief executive, said: "The right types of infrastructure assets can be a great fit for pension fund investors as they offer the low risk, long-term, inflation-linked returns that help pension schemes meet their regular pension payment obligations."

PiP is an infrastructure investment advisor set up to encourage and facilitate UK pension scheme investment into UK infrastructure.

It works with established asset managers to deliver attractively structured and priced specialist infrastructure investment funds and is on course to become a direct infrastructure investor on behalf of UK pension schemes.

"Historically it's been difficult and expensive for individual pension funds to invest in infrastructure on their own and the PiP was set up to change this by providing another, better, option for infrastructure investing," said Mike Weston.

"We have been working with established asset managers to deliver structured and priced specialist infrastructure investment funds for pension funds small and large, and have now helped secure GBP 1bn of commitments for investment into UK infrastructure - further evidence of the progress PiP is making in delivering a range of infrastructure opportunities tailored to the specific needs of UK pension schemes."

The next step for the organisation is the development and authorisation of PiP as a direct infrastructure investment manager by UK pension schemes, for UK pension schemes.

Further news is expected later in the year.

First published 09.7.2015

Lindsay.sharman@wilmingonplc.com