The Greater Manchester Pension Fund (GMPF) has backed Gresham House’s Sustainable Infrastructure Fund (BSIF) with a £100m (€114m) commitment.
GMPF’s commitment lifts BSIF’s assets under management to more than £500m.
Other local authority pension funds that have backed BSIF include East Riding, Greater Gwent, Teesside, West Midlands, and Worcestershire.
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.
GMPF’s commitment will help the UK local authority pension fund gain greater exposure to innovative solutions and technologies including vertical farming, biodiversity net gain credits, and low-carbon biofuel production in the North West UK and beyond.
Gresham House and GMPF previously partnered in 2019 when the pension fund backed a North-West co-investment fund.
Councillor Ged Cooney, chair of Greater Manchester Pension Fund, said: “We are committed to creating a positive social and environmental impact for communities in the North West. Building on our previous successful investments with the Gresham House team, this £100m commitment will give us greater access to attractive and meaningful, local investment opportunities, from connecting thousands of homes to full-fibre broadband to producing low-carbon biofuels from used cooking oil.
“The scale of infrastructure investment required presents compelling opportunities to help develop the critical assets that will improve lives and deliver lasting local economic and environmental benefits.”
Peter Bachmann, managing director of sustainable infrastructure at Gresham House said: “The LGPS sector has a proud history of seeking out investment opportunities that deliver positive environmental and social impact without sacrificing the potential for attractive risk-adjusted returns.
“We’re very grateful to GMPF and our other LPs whose backing enables us to direct capital into the areas where real asset-based solutions can have the biggest impact. We look forward to creating even greater benefits for GMPF’s members and communities in the North West and beyond.”
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