- Significant progress made in securing a second programme of attractive, long-term investment opportunities on behalf of Partner Funds.
- Marks the first commitments made in Border to Coast’s Climate Opportunities portfolio to support global net zero decarbonisation goals.
- Investment themes in the portfolio include energy transition, digital revolution, and emerging markets.
Border to Coast Pensions Partnership (“Border to Coast”) has committed £2.2bn to funds across private equity, infrastructure, private credit, and climate opportunities, delivering long-term, diversified investment opportunities for Partner Funds.
Forming part of its £4bn second private markets programme, Border to Coast’s initial commitments demonstrate the significant progress made in securing attractive opportunities in the programme halfway through the first year (commitments made between 1 April and 30 September 2022).
Among the key focus areas for investment in the portfolios are:
- the energy transition and supporting investments that further decarbonisation goals;
- the digital revolution and assets that support growth in data and digital communication;
- growth opportunities in emerging markets.
The commitments also include the 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 support 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, said: “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.”
Private Markets Programme ‘Series 2A’ commitments to 30 September 2022:
Climate Opportunities
Brookfield Global Transition Fund ($150m commitment): A fund focused on driving the global transition to a net-zero carbon economy and in aligning investments that contribute to the United Nation’s (UN) Sustainable Development Goals.
Blackstone Green Private Credit Fund ($144m commitment): The fund provides flexible credit capital to companies and assets that focus on renewable energy and climate change solutions.
BeyondNetZero ($110m commitment): The fund seeks growth-stage investments with a focus on decarbonisation, energy efficiency, resource conservation, and emissions management.
Private Equity
Hg Saturn III ($65m commitment): European based private equity manager that focusses on investments in the Software and Services sector.
Hg Genesis X (€60m commitment): European based private equity manager that focusses on investments in the Software and Services sector.
Nordic Capital (€110m commitment): Invests largely in Nordic and North European countries focused on three core sectors – healthcare, technology and payments, and financial services.
Platinum Equity Capital Partners VI ($115m commitment): A global special situations/turnaround investor in mid to large companies, with an operations intensive approach to value creation.
EQT Ventures III ($60m commitment): The fund pursues venture capital investments in early-stage companies in Europe and the US with a focus on businesses benefitting from the digital transformation.
Stepstone Secondaries Opportunities V ($120m commitment): The fund specialises in investments in the private equity secondaries market.
Infrastructure
Icon Infrastructure Partners VI ($175m commitment): Independent London-based fund manager focused on investments in Europe and US mainly in the energy and environment, transport, social, and digital sectors.
Brookfield Infrastructure Fund V ($230m commitment): A fund focused on opportunities in high quality, essential infrastructure assets across the transportation, communications, renewable power and utilities sectors.
KKR Asia Pacific Infrastructure II ($180m commitment): An investor with relationships across key Asia markets focused on infrastructure investments in the Asia-Pacific region.
DigitalBridge, Project MacGregor ($60m commitment): A co-investment alongside DigitalBridge in the take private Switch Inc, a developer and owner-operator of data centres in the US.
Private Credit
Brookfield Infrastructure Debt III ($310m commitment): A credit fund lending against essential infrastructure assets across the US and Europe.
HPS Strategic Investment Partners V ($276m commitment): A credit fund focused on investments in junior debt financing for large-cap companies in the US and Europe.
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