Pensions Infrastructure Platform, a new infrastructure fund backed by 10 major U.K. institutional investors with an initial target of £2 billion ($3 billion), will issue RFIs for investment managers later this month, confirmed spokesman Paul Platt.
The fund is targeting returns of 2% to 5% over the U.K. retail price index, with relatively low leverage. Three models of investment management are being considered: First, the entire fund could be managed by an existing manager or managers; second, PIP could build an internal fund manager to manage the assets; and third, a hybrid model combining both external and internal management is also being considered.
The tender process will be launched May 13, and selections will likely be announced later this year. PricewaterhouseCoopers is advising. Further information can be obtained via e-mail at [email protected], and proposals will be due May 31.