GLIL Infrastructure, the investment vehicle backed by the Local Government Pension Scheme (LGPS), has secured £475m in additional fundraising from its members as it looks to up spending on UK assets.
The fresh round brings the fund’s total committed capital to £4.1bn, some £3bn of which has already been pumped into its portfolio, which includes renewable energy, water, ports, schools and hospitals.
The London-based firm recently acquired a minority stake in the mobile towers business Cornerstone, and signed a strategic partnership with Bluefield Solar Income Fund, through which it has acquired a 247 megwatt portfolio of solar energy assets.
The new capital commitments came from GLIL’s fund members, which include pension funds in Manchester, Merseyside and West Yorkshire, the London Pensions Fund Authority, and the workplace pensions scheme Nest.
Ted Frith, Chief Operating Officer at GLIL Infrastructure, said: “This latest endorsement from members, of what GLIL has achieved to date, reflects their commitment to UK infrastructure as an asset class.
“Pension funds play an increasingly important role in driving more investment into infrastructure assets, and our recent survey shows that nearly two-thirds of UK pension fund leaders expect to increase their investment in this area over the next year.”
“As well as offering reliable, inflation-linked returns, infrastructure investment is critical to the UK’s energy transition, supporting local communities and powering the economy.
Stephen O’Neill, head of private markets at Nest, said: “We’re delighted to be expanding our investments in UK infrastructure.
“We see fantastic opportunities to put our members’ money to work in projects right here on their doorstop, while helping grow their pension over the years to come. It’s a win-win situation.”
“Our partnership with GLIL is one of many we’ve set up to invest in the UK. A third of the UK workforce has a pension with Nest and where we can, we want to help invest in their jobs, their communities, and the infrastructure they use.”