BORDER TO COAST PENSIONS PARTNERSHIP ANNOUNCES THE LAUNCH OF ITS PRIVATE CREDIT OFFERING AND INITIAL INVESTMENTS IN PRIVATE EQUITY AND INFRASTRUCTURE

Border to Coast Pensions Partnership (“Border to Coast”), one of the largest public sector pension pools in the UK whose assets total c.£45 billion, has launched its Private Credit offering and announced its initial Private Equity and Infrastructure investments.  This £1.8bn of commitments over the next 18 months is in addition to the c £15bn of funds already managed by the company.

Border to Coast has now launched its Private Markets offering, a year ahead of schedule to meet emerging Partner Funds needs.  It is an important step in making a difference to outcomes for its LGPS Partner Funds by seeking to enhance risk-adjusted, net of fees, returns from Private Market investments.

Border to Coast will be working with high quality managers to build diversified global portfolios over the longer-term.  Investments are selected using a robust investment process incorporating principles of responsible investment.  As part of its due diligence process, Border to Coast is developing longer-term relationships with key industry participants to enable Partner Funds to collectively benefit from their investments in Private Markets.

 

Private Credit

Border to Coast has secured £581m of commitments from eight Partner Funds to its first Private Credit offering, which launched in October 2019. These commitments are to be invested in the period to 31 March 2021 as part of a programme to provide a diversified global private credit portfolio over the long term across Direct Lending, Real Assets, Mezzanine/Speciality and Stressed/Distressed.

 

Private Equity

In May 2019 Border to Coast secured £500 million of commitments from eight Partner Funds to its first Private Equity offering.  These commitments are to be invested in the period to 31 March 2020 as part of a programme to provide a diversified global private equity portfolio over the long term across Buyout, Special Situations, Growth and Venture strategies. To date, Border to Coast has made commitments into the following investments:

  • GreatPoint Innovation Fund II – $40 million
  • Palatine Private Equity Fund IV – £40 million
  • Baring Asia Private Equity Fund VII – $60 million

These commitments provide exposure to a number of Border to Coast’s targeted themes within Private Equity including Operational Value Add, Healthcare, Technology and Asia.

 

Infrastructure

Border to Coast has also secured £675 million of commitments from ten Partner Funds to its first Infrastructure offering in July 2019. These commitments are to be invested in the period to 31 March 2020 as part of a programme to provide a diversified global infrastructure portfolio over the long term across Core, Core+ and Value Add/Opportunistic strategies.  To date, Border to Coast has made commitments into the following investments:

  • Brookfield Infrastructure Fund IV – $125 million
  • Global Infrastructure Partners Fund IV – $60 million

These commitments provide exposure to a number of Border to Coast’s targeted themes within Infrastructure including Operational Value Add and Emerging Markets.

 

Border to Coast CIO Daniel Booth commented “We are very pleased with the level of engagement from industry participants following the launch of our Private Markets offerings and the openness and transparency of managers on which we have conducted due diligence. We have engaged with a number of high-quality managers and look forward to developing these relationships further. We very much appreciate the confidence shown in Border to Coast by our Partner Funds, with larger-than-anticipated commitments.”