The Local Pensions Partnership (LPP) has launched its new private equity (PE) structure, coinciding with its first full year of operation, having received its FCA accreditation in April 2016.
The new structure brings the GBP1.8 billion PE assets of its two shareholder funds, the London Pensions Fund Authority and Lancashire County Pension Fund under the management of LPP Investments (LPPI), a fully-owned subsidiary of LPP.
It also sets up LPPI to act as a full-fledged, FCA-authorised investment manager that can now be appointed directly by other funds to manage private equity investments.
LPP’s PE strategy seeks to achieve long-term investment returns by investing in companies at various stages of the growth cycle (buyout, growth capital, special situations and distressed).
Susan Martin (pictured), LPP chief executive, says: “We’re delighted to have taken our next step in the pooling process, especially so quickly after launching our equity fund in November last year.
“Over the next few months we will continue to launch more funds and structures with infrastructure, total return, fixed income and credit in the pipeline. As a not-for-profit pension services organisation, LPP is implementing an effective investment management structure that helps to deliver cost savings and investment benefits to our clients, their employers and scheme members.”
The launch of the new PE structure follows the launch of a GBP5 billion Global Equity Fund by LPP in November 2016, and marks the first anniversary of LPP receiving FCA accreditation.
LPP’s Global Equities Fund has already delivered a significant reduction of more than GBP7.5 million per annum in the overall costs for the founding investors.
