Gresham House’s British Strategic Investment Fund (BSIF) has received further backing from UK local government pension schemes to raise £300m (€330m).
The specialist alternative asset manager said since the £200m interim close in September last year, the real assets fund has received new capital commitments the Worcestershire Pension Fund, the Greater Gwent Pension Fund and from the West Midlands Pension Fund to achieve its £300m upper limit fundraising target.
BSIF’s previous backers include the Greater Manchester Pension Fund and the Greater London Authority.
The manager said BSIF has already deployed capital into the renewable energy, battery storage, waste disposal, vertical farming and key worker accommodation sector.
They join cornerstone investors, the Royal County of Berkshire Pension Fund and Teesside Pension Fund.
Gresham House said alongside their commitments to the strategy itself, two limited partners have established local co-investment portfolios, allowing them to increase exposure to areas of specific interest within specified regional locations.
Tony Dalwood, CEO of Gresham House and BSIF investment committee member, said: “I am delighted that despite the current climate of uncertainty and headwinds to the UK economy, we have reached the upper limit of our investment target.
“Our investment philosophy resonates with reputable institutional investors and increasingly, we are seeing a desire from investors to deliver both positive financial returns alongside the sustainability agenda which BSIF is targeting.”
Paul Middlebrough, chair of Worcestershire Pension Fund Committee said: “Not only does BSIF provide much sought-after income streams, the strategy’s differentiated portfolio broadens our alternatives exposure at a time when diversification is crucial.
“Additionally, we are pleased to be gaining exposure to projects which have positive social and environmental impact in the UK.”
Jill Davys, assistant director - investments and finance, West Midlands Pension Fund said: “As we witness increasing demand for alternative sources of income as well as a growing emphasis on ESG credentials, this partnership with BSIF represents a natural fit to also complement the Fund’s growing focus on sustainability.”
Spokesperson on behalf of Greater Gwent Pension Fund said: “This investment is a milestone in the Greater Gwent Pension Fund’s pursuit of infrastructure exposure with a clear emphasis on sustainability.
”We are pleased to have taken this positive step in investing in the UK infrastructure market and look forward to working with Gresham House for the foreseeable future.”
