Gresham House’s British Strategic Investment Fund (BSIF) made five investments during 2018 and has now deployed over 45 per cent of its committed capital.
BSIF invests in the housing and infrastructure sectors, both identified by the UK Government as structurally important areas requiring local investment. As a closed-ended fund with a 12-year time horizon, BSIF invests with a long-term view into these important sectors. The fund targets an 8-10 per cent annual net return including a minimum income yield of 5-6 per cent per annum.
Sustainable investing forms a key part of BSIF’s investment philosophy. As well as seeking superior, risk-adjusted returns, a positive social impact is a necessary requirement for every investment driving the ability to generate a “double bottom-line” return for clients.
To date, the fund has GBP165 million of commitments from institutional investors including Local Government Pension Schemes (LGPS). Where relevant BSIF offers investors the opportunity for co-investment, in their own communities as well as further afield. BSIF is targeting a final close during 2019.
Ben Guest, Lead Fund Manager for BSIF, says: “We are pleased to have now deployed capital in a number of investments that provide our LPs with exposure to the UK housing and infrastructure markets in a differentiated way. Not only are we confident that our investments will generate attractive risk-adjusted returns, they will also deliver a positive social impact in sustainable investments. We believe that we are well positioned to benefit from the rapidly changing landscape in the UK, focusing on sectors supported by long-term demographic, lifestyle, regulatory and technological trends while avoiding those facing the most political risk in the short to medium term. In our view the housing and infrastructure sectors remain an exciting space for investment in the future. The team now has a track record of over ten years in these private asset areas and the opportunity continues to grow.”
