BORDER TO COAST PENSIONS PARTNERSHIP LAUNCHES ITS FIRST TWO PRIVATE MARKET OFFERINGS WITH OVER £1 BILLION OF COMMITMENTS
Posted on July 17th, 2019
Leeds, 17 July 2019, Border to Coast Pensions Partnership (“Border to Coast”), one of the largest UK public sector pension pools in the UK whose assets total c. £46 billion, announces the launch of its offerings for private equity and infrastructure with over £1 billion of commitments from Partner Funds. These are the first offerings in Border to Coast’s private markets programme which is expected to grow to £10 billion over the long-term.
Border to Coast is delighted to announce the launch of its Private Equity offering in May 2019 with £500m of commitments from eight Partner Funds. These commitments will be invested over the next year via high quality managers 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.
Border to Coast is also pleased to announce its first Infrastructure offering, which went live in July 2019 with £675m of commitments from ten Partner Funds. These commitments will be invested over the next nine months with high quality managers as part of a programme to provide a diversified global infrastructure portfolio over the long-term across Core, Core+ and Value Add/Opportunistic strategies.
Detailed due diligence has commenced on a number of suitable investment opportunities. It is anticipated that investments will begin over the Summer.
Partner Funds are currently anticipated to make similar commitments to Private Equity and Infrastructure on an annual basis over the medium term, with an objective to deploy the capital in the 12 months following each annual commitment, subject to asset allocation decisions by the Partner Funds and the availability of suitable investments.
The launch of our Private Markets structure is an important element of the value that Border to Coast is seeking to bring to Partner Funds. The key aims of the Private Markets structure are to enhance risk-adjusted, net of fees returns for our investors through economies of scale, increased resources for due diligence, and access to a wider range of investments. We have developed a robust investment process incorporating principles of responsible investment, through which we hope to develop longer-term relationships with key industry participants to enable Partner Funds to collectively benefit.
Border to Coast CIO Daniel Booth commented “I am grateful to Mark Lyon, our Head of Alternatives, and the wider Border to Coast team for their hard work and dedication in setting up our alternative investment platform in such a tight timeframe, which will allow us to begin investing into the exciting range of opportunities we are currently reviewing.”
Border to Coast would like to thank our Partner Funds for their engagement and input during the design and build of the Private Markets structure and for their support in making significant capital commitments to these first two offerings.
Border to Coast would also like to thank the Private Markets industry for their assistance, feedback and patience over the last 15 months which culminated in c. 200 managers attending our recent Private Markets Manager Day in Leeds.