UK’s Border to Coast Pensions Partnership Raises a Further 1.2 Billion for Climate Investment Fund

Border to Coast Pensions Partnership has announced the expansion of its private markets program to £16 billion, thanks to an additional commitment of £3.6 billion from LGPS Partner Funds. The private markets program, which has seen substantial growth since its launch five years ago, has already invested approximately £12 billion and secured a 28% reduction in fees for Partner Funds. The recent commitments include £0.5 billion allocated to an innovative ‘UK Opportunities’ portfolio, aimed at investing in productive finance assets in the UK, such as housing, transportation, energy, and growth finance. Additionally, £1.2 billion has been dedicated to Border to Coast’s second Climate Opportunities offering, which focuses on projects and businesses expected to contribute significantly to the decarbonization of the global economy. The ‘UK Opportunities’ portfolio seeks to generate long-term returns while making a positive economic impact. It aims to invest in various sectors such as residential housing, commercial property, infrastructure, renewable energy, corporate financing, and social bonds. By targeting “additionality,” the portfolio aims to finance new projects that provide value to the local and wider UK economy, ultimately benefiting UK communities. The ‘Climate Opportunities’ portfolio, on the other hand, focuses on investments that support the energy transition and help achieve net-zero goals. It includes investments in renewable energy, battery storage, electric vehicles, green hydrogen, and sustainable food production. Border to Coast’s private markets program, launched in 2019, provides LGPS Partner Funds with access to investment opportunities in the UK and abroad, with the aim of delivering enhanced long-term returns and cost-effective access to private markets through strategic partnerships with asset managers. Resources: https://esgnews.com/uks-border-to-coast-pensions-partnership-raises-a-further-1-2-billion-for-climate-investment-fund/