GLIL secures additional £475m in UK pension fund capital

UK pension fund-backed GLIL Infrastructure has received an additional £475m (€552m) from its members to fuel further investments in core UK infrastructure assets.

The open-ended GLIL fund said the capital was received from members including the Northern local government pension schemes (LGPS) fund members, Greater Manchester, Merseyside and West Yorkshire pension funds. The Lancashire County Pension Fund, Royal County of Berkshire Pension Fund and the London Pensions Fund Authority, which form Local Pensions Partnership Investments, and defined contribution workplace pension provider Nest were also part of the latest fundraising round.

Total commitments to the GLIL fund has now reached £4.1bn from its members. Over £3bn has already been invested in a diversified infrastructure portfolio spanning renewable energy, energy transition, transportation, water, ports, schools and hospitals, GLIL said.

GLIL’s latest deals include acquiring a minority stake in UK’s largest mobile towers company Cornerstone, and most recently signing a partnership with Bluefield Solar Income Fund, which includes the acquisition of Lyceum, a 247MW operational solar energy portfolio.

Ted Frith, COO 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. With the help of our LGPS members and Nest, we will be able to capitalise on a strong pipeline of new investment opportunities that provide reliable returns for many years to come.”

Stephen O’Neill, head of private markets at Nest, said: “At Nest, 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.”

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