Border to Coast Pensions Partnership, Leeds, England, will allocate a fresh £1.3 billion ($1.8 billion) to public alternatives, a spokeswoman confirmed.
Starting in early 2022, the pension fund will globally deploy commitments for 10 of its 11 member U.K. local authority pension funds to alternatives such as public real estate and public infrastructure.
However, the spokeswoman said all 11 member pension funds are expected to make commitments by the time of the launch.
Investments in renewable energy, energy storage, data centers, fiber-optic cables, logistics hubs and health-care facilities will be made alongside Border to Coast's existing £5.7 billion private markets program.
The allocation, which will be managed in-house, will aim to outperform the MSCI All Country World index over a five-year period.
"We will take advantage of our long-term investment horizon by selecting high-quality investment opportunities that tap into themes we expect to shape the future, such as renewable energy generation and transmission, digital connectivity and urbanization," said Ryan Boothroyd, portfolio manager at Border to Coast, in a news release.
Border to Coast's member pension funds have £55 billion in combined assets.