Tyne and Wear Pension Fund has made a £100 million commitment to invest in communities across the UK over the next three years.
The £100m investment forms part of a larger £500m UK Opportunities private market portfolio with Borders to Coast Pension Partnership and is set to drive long-term investment into the UK economy on behalf of its Local Government Pension Scheme (LGPS) Partner Funds.
The portfolio will focus on financing new projects offering attractive investment returns, delivering high-quality investment opportunities that will have a positive impact on communities whilst adding value to the local and wider UK economy.
Cllr Ken Dawes, Chair of Pensions Committee at South Tyneside Council said: “We are very excited about the launch of UK Opportunities which is a product we, along with our partners, have been developing for a few years. This is an investment proposition first and foremost but one that directs capital into UK projects to benefit society.
“It is about targeting investment in a way that will make a difference to people’s lives. The portfolio has a UK wide mandate with a tilt to the Border to Coast pension’s footprint, a large part of which is here in the North East.
“This is a significant commitment to invest in a range of solutions that aim to deliver investment in the UK, and we hope that the region will also see the benefits.
“We are confident this latest commitment will deliver the financial returns we need for our members’ pensions as well as investing in developments that benefit UK communities”.
Managed directly by Border to Coast’s internal investment team, UK Opportunities will invest in a way that makes a positive contribution to society and help people and will consider investments in:
- Residential housing: building new social and affordable housing, assisted living and build to rent developments.
- Commercial property: developing offices, logistics, industrial, leisure and science and innovation, and the regeneration of brownfield sites.
- Infrastructure: building social, communications, and transportation infrastructure.
- Renewable energy: renewable power generation and associated storage and grid infrastructure.
- Corporate financing: funding the growth and expansion of UK companies through provision of debt and equity capital.
- Social Bonds: outcomes-based financing aimed at delivering a specific social or health impact.
