An investment vehicle backed by a collection of local authority pension funds has raised a further £500 million from its stakeholders as it ploughs money into British infrastructure projects. The move by GLIL Infrastructure takes the fund’s total capital to more than £2.3 billion and gives it further financial firepower to back big developments including in rail, renewable energy, utilities and ports. GLIL Infrastructure was set up in 2015 by Greater Manchester Pension Fund and London Pensions Fund Authority specifically to back infrastructure projects. Pension funds tend to favour investments in infrastructure because they generate a long-term and reliable stream of cashflows that help them to match their assets with their liabilities to pay retirement benefits over decades. This fund is backed by an array of local authority retirement schemes, including Merseyside and West Yorkshire, Lancashire and Berkshire. It has already invested £1.4 billion in infrastructure, including in Anglian Water, Clyde Wind Farm and Forth Ports. The government is prioritising investment in roads, rail and energy generation assets and hopes to involve the private sector in funding initiatives to rebuild the backbone of the economy.
Times 11th Jan 2021 read more »