LGPS Central has invested in Yorkshire Water, a UK regional water and sewerage company.
The UK local government pension scheme (LGPS) pool has committed an unspecified amount to Yorkshire Water through a partnership led by EQT.
Earlier this week, EQT said it had acquired a 42% shareholding in Kelda Holdings, the parent company of Yorkshire Water, via its EQT Active Core Infrastructure strategy. Financial details were not disclosed.
Yorkshire Water provides water and wastewater services to approximately 5.5m individual customers, serving over 2m homes and 140,000 businesses. It operates nearly 700 treatment works, 120 reservoirs and over 83,000km of mains across the Yorkshire region.
Jayne Atkinson, CIO of LGPS Central, said: “This investment reflects our conviction in essential infrastructure assets that deliver stable, long-term value for our partner funds while supporting the UK economy.
“Water infrastructure is fundamental to communities, environmental outcomes and economic resilience, and this transaction allows us to play a constructive role in the sector’s long-term development.”
LGPS Central, investing on behalf of eight LGPS, said it continues to assess opportunities where long-term pension capital can support critical infrastructure investment, deliver sustainable returns while contributing positively to the UK’s economic and social objectives.
LGPS Central provides investment management services to Cheshire Pension Fund, Derbyshire Pension Fund, Leicestershire County Council Pension Fund, Nottinghamshire Pension Fund, Shropshire County Pension Fund, Staffordshire Pension Fund, West Midlands Pension Fund and Worcestershire Pension Fund.
Seven pension funds for Gloucestershire, Hampshire, Isle of Wight, Norfolk, Oxfordshire, Suffolk and Wiltshire, respectively, which were previously part of ACCESS and Brunel pools, have formally confirmed their intention to join the central England-based pool, bringing the total number of partner funds to 15. Together, they will take LGPS Central’s total managed assets to around £100bn (€116bn).
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