Pension fund manager backs infrastructure debt fund with £220m investment

Andrew McClean (LGPS Central), Stefanie Herpel (Macquarie Asset Management), Marc Hastings (Noviniti – Developer), Dillon Anderiesz (Macquarie Asset Management) & Nadeem Hussain (LGPS Central) outside Princess Royal Hospital in Telford.

LGPS Central has made a £220m investment in a UK inflation-linked infrastructure debt fund, with more than £30m to be directed towards Midlands hospitals work.

The Macquarie Inflation-Linked Income (MILI) Fund is targeted at UK pension schemes seeking debt investments to match their long-dated inflation-linked liabilities.

More than £30m of funds will be used to fuel three Midlands development projects at hospitals in Telford (admin hub including café and convenience store), Warwick (main entrance and retail hub), and Derby (multi-storey car park).

LGPS Central – the £56bn asset manager for eight local authority pension funds across the Midlands says the significant infrastructure debt opportunities drove its decision to invest in the MILI Fund alongside a strong pipeline of inflation-linked lending. It says there’s been a demand for this type of lending which also delivers societal and environmental benefits for the UK.

Partner Funds involved in this landmark investment include the West Midlands Pension Fund and Cheshire Pension Fund.

Nadeem Hussain, Head of Private Markets at LGPS Central, said: “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, whilst maintaining the paramountcy of our fiduciary duty. We are particularly pleased with the local significance of the initial investments, underscoring our commitment to our community at Central.”

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