Local Government Pension Scheme (LGPS) pool Border to Coast Pensions Partnership has confirmed a further £1.7bn of new investments in its £12bn private markets programme in 2022/23.

The total consisted of £261m in private equity, £502m in infrastructure, £486m in private credit, and £452m in climate opportunities.

The pensions pool stated that the scale of investments was resulting in “significant” cost reductions, with around 26 per cent of cost reduction in headline fees to date.

Border to Coast’s private markets programme is “integral” to its delivery of access to a wider range of investments on behalf of its 11 LGPS partner funds, the pensions pool said.

The most recent commitments by Border to Coast include investments in the energy transition, the digital transition, and growth opportunities in emerging markets.

“As a large and sophisticated investor, we are securing high quality and cost-effective investment opportunities for our partner funds,” stated Border to Coast deputy chief investment officer, Mark Lyon.

“These have the potential to offer enhanced long-term investment returns while reducing costs.”

Examples of the new investments in climate opportunities include greenfield renewables power generation, grid infrastructure and storage assets, such as a co-investment into solar and battery energy storage system project, Edwards Sanborn.

Commenting on the pool’s climate-related investments, Border to Coast head of investments (alternatives), Ian Sandiford, said: “Climate opportunities is an innovative investment strategy which is delivering significant investment to enable the energy transition to net zero, supporting both our partner funds’ investment strategies and our own commitment to net zero.”

The £1.7bn of investments conclude the £4bn ‘Series 2A’ private markets programme first announced in April 2022.

In December 2022 Border to Coast confirmed the initial £2.2bn of investments of this strategy.

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