UK pension pool commences initial £500m PE deployment

The organisation secured £500m from eight of the 12 pension plans that make up the BCPP, according to a press release published on 17 July. Further details of the eight commitments were not disclosed.

"The partner funds made individual commitments based on their asset allocation requirements, taking into account their existing investments and size of fund," BCPP CEO Rachel Elwell told Unquote.

BCPP will target investments in buyouts, special situations, growth and venture strategies as part of a global diversified portfolio.

It is understood that the organisation is planning to make between 10-12 investments per year.

BCPP is authorised to select the private equity funds on behalf of the partner funds with investment costs recovered from the underlying pension plans.

A second PE subscription window is expected to open in Q1 2020, for which BCPP will invite the 12 UK pension plans to commit additional funds. These commitments will be invested in PE from April 2020.

BCPP is one of the eight partnerships between 89 local government pension schemes (LGPS) in England and Wales that collectively invest in assets, in a bid to take advantage of economies of scale.

Established in 2018, BCPP oversees the investments of the pension funds of Bedfordshire, Cumbria, Durham, East Riding, Lincolnshire, Northumberland, North Yorkshire, South Yorkshire, Surrey, Teesside, Tyne & Wear and Warwickshire.

BCPP also announced the launch of a £675m infrastructure offering as it seeks to grow its private markets programme to £10bn in the long term.

The alternatives team at BCPP is led by Mark Lyon, and Daniel Booth is chief investment officer.

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