Gresham House expects a final close for its British Strategic Investment Fund (BSIF) in the first quarter of next year, the manager said today as it announced receiving additional capital from two UK local government pension schemes.
The specialist alternative asset manager said BSIF has now raised £200m (€230m) in total after receiving new commitments totalling £35m from the Greater Manchester Pension Fund and Greater London Authority (GLA).
In addition, the Greater Manchester Pension Fund has committed a further £20m to a North-West co-investment portfolio.
The manager said the new investors join cornerstone investors, the Royal County of Berkshire Pension Fund and Teesside Pension Fund.
Tony Dalwood, CEO of Gresham House and BSIF investment committee member said: “BSIF continues to support opportunities within the UK’s vital housing and infrastructure sectors, a substantial investment universe which affords clear opportunity for both financial and positive impact returns.
“We are excited to welcome two further, and highly-respected, institutional investors.”
Luke Webster, the GLA CIO and managing director of the GLA’s asset management company, London Treasury, said: “We are delighted to add this diversifying investment to the London strategic reserve portfolio and look forward to the BSIF team delivering solid financial returns to help preserve the spending power of London’s long-term cash reserves, with corollary environmental and social benefit.”
BSIF, a closed-ended fund with a 12-year time horizon, invests with a long-term view targeting an 8% to 10% annual net return including an income yield of 5% to 6% per annum.
To date, BSIF has made six investments, deploying 41% of available capital into renewable energy, vertical farming, waste recycling and key worker accommodation assets.