Border to Coast confirms £1.7bn of new commitments towards private markets

LGPS pool Border to Coast has confirmed £1.7bn of new investments to its £12bn private markets programme.

The £60bn pension pool announced that the commitments will be invested in private equity (£261m), infrastructure (502m), private credit (c.£486m) and climate opportunities (£452m).

The recent investments were focused on supporting the energy transition, such as greenfield renewables power generation, grid infrastructure and storage assets and funds that targeted growth opportunities in emerging markets.

Border to Coast added that £350m of the investments have been committed as part of its £1.35bn Climate Opportunities offering, which targets investments that will have a “material positive impact” on climate change.

Ian Sandiford, Border to Coast’s head of investments (alternatives), said: “Climate Opportunities is an innovative investment strategy which is delivering significant investment to enable the energy transition to net zero, supporting both our partner funds’ investment strategies and our own commitment to net zero.”

Border to Coast stated that the scale of investments has enabled significant cost reductions of 26% in headline fees aggregated across all strategies.

These £1.7bn investments conclude Border to Coast’s £4bn ‘Series 2A’ private markets programme as the pension pool confirmed in April that it had £2.3bn of initial commitments to the strategy.