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LGPS Central is committing £220m in an infrastructure debt fund. The first confirmed investments of over £30m are for developments at three UK hospitals in the pool’s local area of Telford, Warwick and Derby.
The Local Government Pension Scheme pool said the commitment to the Macquarie Inflation Linked Income Fund aligns with the evolution of its private credit strategy and bolsters its portfolio within the infrastructure debt sector.
Nadeem Hussain, head of private markets at LGPS Central, said the Wolverhampton-based pool is particularly pleased with the local significance of the initial investments.
"This investment in the MILI Fund is an encouraging step forward in further diversification in our private market strategy. Investing in sub-sectors such as healthcare infrastructure contributes to wider social benefit,” he said.
The manager choice was down to Macquarie’s “significant scale and strong UK market presence, offering ample infrastructure debt opportunities, including a promising pipeline of inflation-linked lending”, according to LGPS Central, which pointed to demand for long-dated inflation linked cash flows that also deliver societal and environmental benefits in the UK.
The MILI fund focusses on largely inflation-linked opportunities financing economic and social infrastructure in the UK.
The pension funds involved in this investment include the pension funds for West Midlands and for Cheshire.
Are more pension funds considering allocations to infrastructure debt?
