Border to Coast adds £2.2bn to second private markets programme

Border to Coast Pensions Partnership, one of the UK’s largest public sector pension pools, has allocated a further £2.2bn (€2.5bn) to its private markets programme.

The move is part of its ‘series 2’ £4bn private markets programme announced in April this year. The funds will be deployed across a range of new infrastructure, private equity, private credit and climate-related opportunities.

Border to Coast outlined three areas of focus for the new investment, centering on the energy transition and decarbonisation; the digital revolution and assets that support growth in data and digital communication; and emerging markets opportunities.

The commitments include the partnership’s first made through its £1.35bn climate opportunities portfolio. To be invested over a three-year period, the climate opportunities portfolio targets investments with the potential to have “a material positive impact on climate change” and to support Border to Coast’s net zero carbon emission goals.

Ian Sandiford, head of investments (alternatives), Border to Coast, said: “Through our programme, we have continued to secure access to quality, established private market managers on behalf of our partner funds. Our collective scale means we can drive value for money while securing access to innovative opportunities in private markets with the potential for enhanced long-term returns.”

Designed to offer its LGPS Partner Funds access to a wider range of investments, including co-investments, the total value of Border to Coast’s private markets programme now stands at £10bn.

Following the success of its first three-year programme, which closed successfully in March 2022, the second programme launched in April with £4bn of additional commitments.

Mark Lyon, deputy chief investment officer, Border to Coast, added: “We are proud that our proactive work to fund solutions to the climate crisis has also resulted in significant commitments made as part of our climate opportunities portfolio. As a responsible investor, we know we have a key role to play in reaching net zero by 2050 or sooner. The private markets programme enables partner funds to access diverse, long-term opportunities while supporting the transition to a lower carbon future.”

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