Border to Coast Pensions Partnership, Leeds, England, committed £1.2 billion ($1.6 billion) to private markets, including infrastructure, private equity and private credit, the asset manager said Wednesday.
The investments are part of a £2.7 billion private markets program that since July has invested in new infrastructure, private equity and private credit funds. The program is designed to give the partner funds more investment options, including co-investments.
Border to Coast documents said an integral part of the program's selection process "is a strong focus on how managers incorporate ESG and responsible investment considerations into their investment process."
The recent commitments include £594 million to four infrastructure funds. Border to Coast committed $275 million to KKR Diversified Core Infrastructure Fund, which invests mainly in North America and Western Europe and is managed by KKR & Co.; $210 million to Stonepeak Asia Infrastructure Fund, which invests in infrastructure assets across Asia within the communications, transport and logistics, and energy transition sectors, and is managed by Stonepeak Infrastructure Partners; $210 million to Digital Colony Partners II, a fund managed by DigitalBridge Group that invests in cell towers, data centers and fiber broadband networks globally; and €100 million ($114 million) to Meridiam Sustainable Infrastructure Europe IV, a fund that invests in Europe across the themes of mobility (people and goods), energy and transition, and environmental and social infrastructure.
In private equity, the pension pool committed a total of £434 million to four private equity funds: $130 million to Strategic Value Special Situations Fund V, which focuses on midmarket investments in the U.S. and Europe, and is managed by Strategic Value Partners; $140 million to Insight Partners XIII, a fund that invests in software and internet companies mainly in the U.S.; $180 million to HarbourVest Partners Co-Investment Fund VI, a buyout and growth equity fund; and $140 million to Baring Asia Private Equity Fund VIII, a fund managed by Baring Private Equity Asia that focuses on buyout and control investments in Asia.
In private credit, Border to Coast committed $208 million to Ares Senior Direct Lending Fund II, a fund managed by Ares Management that targets middle- and upper-middle-market companies in the U.S.
One of the U.K.'s largest public-sector pension pools, Border to Coast is owned by 11 local government pension funds, with combined assets of £55 billion. The pension funds are Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, North Yorkshire, Surrey, South Yorkshire, Teesside, Tyne and Wear, and Warwickshire.