Pensions Infrastructure Platform, a £2 billion ($3.3 billion) infrastructure platform, named Dalmore Capital to establish its first fund, the PPP Equity PIP Limited Partnership, confirmed a spokeswoman for the National Association of Pension Funds, which sponsors the platform.
The equity fund has a hard close of £500 million, of which £260 million has already been committed, according to a news release. Further funds will be established for the platform, the release said.
The PIP was established to help U.K. funds invest in infrastructure assets.
“This is a major milestone for the PIP and fantastic news for all U.K. pension schemes that have an interest in infrastructure investment,” said Joanne Segars, CEO of the NAPF, in the news release. “Investments will be targeted at meeting the PIP's original aim to make infrastructure work for pension funds, offering investors low-risk, long-term investments providing inflation-linked cash flows.”
Dalmore manages and advises more than £430 million of assets.
The hiring came on the heels of news that three founding members of the PIP are dropping out. The BT Pension Scheme, BAE Systems Pension Fund and London Pensions Fund Authority will no longer participate in the PIP, spokesmen for the three funds confirmed.
The £40 billion fund BT Pension Scheme, London, wants to focus on its own direct investment program for infrastructure, a statement said.
The £3.4 billion BAE fund, Farnborough, England, said the PIP's risk-return profile of the target investments no longer matched the pension fund's requirements, according to a separate statement.
The £4.6 billion LPFA in a statement said the pricing and the risk-return profile targeted by the PIP as well as other aspects of the PIP cost structure no longer met the fund's changing requirements.