Region to benefit from £500m in Levelling Up investment

Following its initial £80m commitment to development lending in South Yorkshire, the South Yorkshire Pensions Authority is drawing up a portfolio to deploy further capital into the region over the next five to 10 years.

Its portfolio will have five elements with local development lending, housing and local venture capital allocations being wholly focused on South Yorkshire.

Other elements of the portfolio covering specialist housing and traditional private equity and private debt investment will be selected for both their return and impact characteristics. The Pensions Authority will look to work with Fund Managers to direct some of their investment into the same region.

This new investment approach is set out in a plan to be approved by the Pensions Authority at its meeting on 16 March.

The approach aims to create well-paid jobs, stimulate innovation, improve living standards, provide SME and start-up finance and boost use of Net Zero technologies.

It will also set out to increase local housing stock, improve standards for new homes and support decarbonisation.

The new portfolio will over time build up to around £500m worth of investment.

The Pensions Authority currently has a pipeline of over £40m of local investment loans for developments across South Yorkshire in 2023/2024.

Councillor John Mounsey, chair of the South Yorkshire Pensions Authority, said: “We are proud to be able to support South Yorkshire’s economy with more local investment than ever before with our new Place Based Impact Portfolio.

“This approach will really help to boost our area’s economy, providing new homes, environmentally sustainable industrial developments and provide quality jobs for the community whilst allowing the authority to make the returns we need to continue to pay our members’ pensions each month.”

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