London Fund hits first close at £100m

Local Pensions Partnership Investments, London CIV and the London Pensions Fund Authority have secured £100m investment from the London Pensions Fund Authority for the first close of the London Fund. The investment fund is targeting a £300m offering. It focuses on opportunities in build-to-rent, as well as affordable housing, community regeneration, digital infrastructure and clean energy. The portfolio will concentrate on the 32 London boroughs and their immediate surroundings. Each asset will be chosen to provide “sustainable, long-term and risk-adjusted value” to pension scheme members, while “creating a ‘double bottom line’ by making a positive contribution to social and environmental issues in the area”. Further material commitments from several London CIV client funds could see a second close in 2021, to bring the fund to capacity. Robert Branagh, chief executive of the London Pensions Fund Authority, said: “As responsible investors working for our communities, the opportunity to invest in London in a way that will directly benefit Londoners, is a perfect match. We firmly believe that we can contribute to society as well as provide attractive returns to support the pensions of our members.” Chris Rule, chief executive of Local Pensions Partnership Investments, and Mike O’Donnell, chief executive of London CIV, added: “It’s a great example of local government pension schemes working together to deliver attractive risk-adjusted returns with an ESG focus that provides real benefits to Londoners.” Local Pensions Partnership Investments is the investment manager and London CIV is the alternative investment fund manager. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette