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U.K. Local Pensions Partnership launches private equity structure

The Local Pensions Partnership launched a private equity structure under its fully owned subsidiary LPP Investments, bringing together £1.8 billion ($2.3 billion) in assets from its two shareholder pension funds.

The asset and liability partnership, created by the £4.6 billion London Pensions Fund Authority and the £6 billion Lancashire County Pension Fund, Preston, England, received accreditation by the Financial Conduct Authority in April 2016.

LPP said in a news release Wednesday that the new structure brings the management of the two pension funds’ private equity allocations under LPP Investments. The FCA-authorized money manager can also now be appointed directly by other pension funds to manage private equity investments.

The split of assets from each pension fund could not be learned by press time.

The private equity portfolio invests in companies at various stages of the growth cycle, across buyout, growth capital, special situations and distressed.

“Over the next few months we will continue to launch more funds and structures with infrastructure, total return, fixed income and credit in the pipeline,” said Susan Martin, CEO at LPP, in the release. “As a not-for-profit pension services organization, LPP is implementing an effective investment management structure that helps to deliver cost savings and investment benefits to our clients, their employers and scheme members.”

LPP launched in November a £5 billion global equity fund, which the organization said had already delivered a reduction in overall costs for the founding investors of more than £7.5 million per year.

A spokesman for LPP was not immediately available to comment.