Border to Coast gets £3.6bn in new commitments

Border to Coast chief investment officer Joe McDonnell

Leeds-based Border to Coast Pensions Partnership, the largest UK local government pension scheme (LGPS) pool, said it received £3.6 billion in new commitments from its partner funds in April, which will expand its investments in housing, transport and climate-related projects.

The new commitments will increase Border to Coast’s private markets investment programme to £16 billion. The partnership has about £60 billion of assets overall, invested on behalf of more than 1.1 million LGPS members.

Border to Coast said the new commitments include £500 million pledged to its “UK Opportunities” strategy launched in April, designed to direct long-term investment into housing, transport, energy and finance, supporting new building and development across the UK.

They also include £1.2 billion for Border to Coast’s second Climate Opportunities offering, which invests in projects and businesses that are expected to help decarbonise the global economy.

Border to Coast chief investment officer Joe McDonnell said: “The success of our private markets programme to date is testament to the significant benefits pooling continues to bring to the table.

“Our collective scale and strong alignment with our Partner Funds’ needs has resulted in not only sizeable fee reductions and greater potential for attractive long-term returns, but also access to a broader range of global investments, the development of strategic partnerships with UK and global asset managers, and the ability to focus investment into areas such as climate solutions.”

The latest £3.6 billion of commitments are to Border to Coast’s Series 2C of the private markets programme and will be invested across infrastructure (£700 million), private equity (£400 million), and private credit (£800 million), alongside the £500 million committed to UK Opportunities and £1.2 billion committed to Climate Opportunities 2.