Border to Coast secures £1.8bn in private credit, private equity and infra

Border to Coast Pensions Partnership, one of the largest public sector pension pools in the UK with total assets close to £45bn (€52.7bn), has secured investments worth £1.8bn for three of its investment offerings.

These commitments will be invested over the next 18 months, and are in addition to the £15bn the pool already manages.

Border to Coast has now launched its private markets offering, a year ahead of schedule to meet emerging partner funds needs, according to a statement.

It is an important step in making a difference to outcomes for its Local Government Pension Scheme (LGPS) partner funds by seeking to enhance risk-adjusted, net of fees, returns from private market investments, it added.

Border to Coast will work with external managers to build diversified global portfolios over the longer term. Investments are selected using a robust investment process incorporating principles of responsible investment, the pool said.

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.

Daniel Booth, Border to Coast chief investment officer, said: “We very much appreciate the confidence shown in Border to Coast by our partner funds, with larger-than-anticipated commitments.”

For its private credit offering, Border to Coast has secured £581m from eight partner funds, which launched in October. These commitments are to be invested by 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.

As for private equity, the firm secured £500m from eight partner funds. These commitments are to be invested by 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 investments in:

• GreatPoint Innovation Fund II ($40m)
• Palatine Private Equity Fund IV (£40m)
• Baring Asia Private Equity Fund VII ($60m)

These commitments provide exposure to several Border to Coast’s targeted themes within private equity, which include operational value add, healthcare, technology and Asia.

In infastructure, the firm has secured £675m from 10 partner funds, which are to be invested by 31 March 2020. This offering will 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 investments in:

• Brookfield Infrastructure Fund IV ($125m)
• Global Infrastructure Partners Fund IV ($60m)

These commitments provide exposure to several Border to Coast’s targeted themes within infrastructure, including operational value add and emerging markets.