Two U.K. local authority pension funds committed £80 million ($105 million) to British Sustainable Infrastructure Fund II, managed by Gresham House.
The £2.9 billion Bedfordshire Pension Fund, Bedford, England, and the £6 billion Staffordshire Pension Fund, Stafford, England, are aiming to invest with environmental and societal impact in the U.K. economy.
The sustainable infrastructure fund is focused on greenfield, midmarket investments in underfunded sectors that offer the potential for strong returns, while providing support to entrepreneurs and new technologies.
Doug McMurdo, chairman of Bedfordshire Pension Fund, said in a news release: "We are committed to creating positive environmental and social change for communities here in the East of England, which already plays host to a wide range of renewable energy infrastructure — our region is already playing a key role in the U.K.'s transition to net zero."
Mike Sutherland, chairman of Staffordshire pension committee added in the news release: "BSIF's highly differentiated and diversified portfolio is designed not only to deliver strong financial returns but aligns well with Staffordshire's commitment to sustainable investment. We view this allocation as complementary to our core infrastructure exposure and allows us to meet our commitment to place-based impact investment here in the U.K."
Spokesmen for the pension funds could not be reached to provide additional details.