Pensions Infrastructure Platform

PIP ACQUIRED BY FORESIGHT

The PiP Board are pleased to have reached agreement with Foresight for the acquisition of the entire platform. Please see below for the full announcement.

  • Mutually beneficial transaction means broader infrastructure exposure for Foresight and deeper resources for PiP
  • PiP team to transfer to Foresight over the Summer with PiP CEO, Paula Burgess, becoming a Partner of Foresight
  • Five founder PiP investors remain LPs
  • Acquisition will take Foresight’s assets under management to £6.5 billion

Foresight Group LLP (“Foresight”) has reached agreement with Pensions Infrastructure Platform Limited (“PiP”) and its founding investors to acquire the platform in its entirety.  The transaction, which follows a competitive process run by the PiP Board, is expected to complete in about a month.

Founded in 2013 under the leadership of the Pensions and Lifetime Savings Association, PiP is backed by major UK pension schemes – British Airways, Pension Protection Fund, Railpen and local government pension schemes Strathclyde and West Midlands. It provides investment expertise and asset management to pension funds investing in UK infrastructure.  It received authorisation in 2016 and has established a portfolio of 17 assets mostly through the PiP Multi-Strategy Infrastructure Fund, covering the Energy from Waste, Renewables, Social and Transport sectors, with a NAV in excess of £700 million.   

Foresight has been an active investor in infrastructure for more than 13 years.  In that time, it has established one of the leading infrastructure asset management teams numbering over 100 professionals in five international offices who between them manage more than 250 assets.  The transaction comes almost a year to the day following Foresight’s acquisition of the JLEN Environmental Assets Group (“JLEN”) advisory mandate, which saw the successful integration of the 14-strong JLEN team, and will take the total generating capacity of Foresight-managed renewables assets to 2.5GW.

Upon completion, Paula Burgess, CEO of PiP, will become a Partner of Foresight and the whole PiP team, including CIO Ed Wilson and Head of Asset Management Andy Clapp, will join Foresight’s infrastructure team of investment and asset management professionals. Within Foresight they will manage PiP’s assets and relationships with its LPs, building on this base for further diversification. 

The acquisition is of strategic importance to Foresight.  It immediately boosts its infrastructure offering with a broader scope of investments that complements its existing suite of funds, and will accelerate application of the Group’s recognised environmental and sustainable investment capability into other infrastructure sectors.  From PiP’s perspective, Foresight provides access to extensive resources that will deliver increased resilience to its ongoing asset management capability as well as facilitate future growth opportunities.  The acquisition will result in Foresight’s assets under management rising by 38% (£1.8 billion) to £6.5 billion.

PiP and Foresight have both been long-term signatories of the Principles for Responsible Investment (PRI) and the transaction will further strengthen Foresight’s impressive ESG and sustainability credentials.

Nigel Aitchison, Partner and Head of Infrastructure at Foresight said: “The skills of the PiP team will further strengthen the depth and breadth of our specialist infrastructure presence and Foresight’s position as a leading infrastructure manager. We look forward to welcoming the PiP team to the Group.

Paula Burgess, CEO of PiP, said:  “This combination means the PiP team can continue to work with UK pension funds, while bringing additional skills and resources to bear and attracting more investment as part of a larger platform.  We are excited to be joining the Foresight team.”

Speaking for the founder investor group, Rachel Brothwood, Director of Pensions, West Midlands Pension Fund, added: “West Midlands has built a strong partnership with PiP which has enabled effective growth in a range of long-term UK infrastructure investments, targeting inflation-linked returns and cashflow required to help pay pensions – we look forward to continuing to build on that foundation with Foresight as both the Fund’s investment strategy and market opportunities continue to evolve.”  

Tony Poulter, Chair of PiP, added: “This transaction strengthens both PiP and Foresight and gives investors very good reasons to consider the combined infrastructure team for both new investment and asset management. The PiP board is very happy with the outcome .”

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PIP ACQUIRES WIND FARM PORTFOLIO FROM SEP

PiP’s Multi-Strategy Infrastructure Fund has acquired a portfolio of onshore wind farms from Scottish Equity Partners (SEP) for an enterprise value of £50 million.

The newly-acquired portfolio ranges from single-turbine sites across the Orkney and Shetland Islands to utility-scale turbines in Curraghderrig, Ireland and the Port of Tilbury in London.

Comprising 64 turbines in locations across the UK and Ireland the portfolio will supplement PiP’s existing wind assets including Aura, one of the largest stand-alone Feed in Tariff wind portfolios in the UK, and Blyth, a minority shareholding in a 550MW 24 site wind portfolio operated and majority owned by EDF.

Commenting on the transaction, Peter Bachmann, a Director in SEP’s technology infrastructure team said: “We are pleased to conclude this sale to PiP.  Over the last four years, we have added significant value to the portfolio through active management and a hands-on approach.  We believe this is the appropriate time for our fund to exit and we wish PiP success in the future.”

Joe Davis of PiP said: “PiP is delighted to have acquired this portfolio as it further provides our pension scheme investors with long term, inflation-linked cash flows to be used to help meet their pension obligations.”

Click here to see more about PiP’s existing wind assets and our work in the renewables sector.

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PIP APPOINTS HEAD OF ASSET MANAGEMENT

Pensions Infrastructure Platform (PiP), the infrastructure business developed by pension schemes for pension schemes, announces the appointment of Andy Clapp as Head of Asset Management.

Andy has over 15 years of experience in the infrastructure market first as an adviser, then through equity investment and latterly in asset management.  He has gained considerable experience in PPPs and Renewables through the management of multiple transactions and numerous board director roles.

Paula Burgess, Chief Executive, PiP, commented:

“We are very pleased that Andy is joining the PiP team.  The PiP Multi-Strategy Infrastructure Fund (MSIF) is expected to be fully deployed very soon and Andy has perfect experience to lead our asset management function.”

Andy Clapp, Head of Asset Management, PiP, commented:

“I’m looking forward to joining PiP and helping to further enhance their asset management function as well as support their ongoing deployment activities.  I am excited by the opportunity to work for a platform that is solely motivated to deliver value to its pension scheme investors.”

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CHANGE OF CEO AT PENSIONS INFRASTRUCTURE PLATFORM

Pensions Infrastructure Platform (PiP) today announces that its CEO Mike Weston has decided to step down after four years leading the business and that it has appointed Paula Burgess, formerly COO, as the new CEO.

PiP was designed by pension funds for pension funds. By securing investment commitments and external investments of close to £2bn, PiP has successfully achieved the initial goals set out at its establishment.

After achieving authorisation from the Financial Conduct Authority in 2016, Mike built PiP into an established UK infrastructure investment manager which has deployed UK pension scheme capital into infrastructure assets, including renewable energy, transport and social infrastructure. PiP is now actively managing these assets to deliver secure, long term inflation linked cash flows for its pension scheme investors.

The PiP Board thanks Mike for his valuable contribution and wishes him well for his future career.

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  • Fully operational hospital built under the Scottish NPD model
  • On behalf of UK pension scheme investors, PiP becomes the sole project owner alongside the Scottish Government

Pensions Infrastructure Platform (“PiP”), the specialist infrastructure investment manager established to facilitate long term investment into UK infrastructure by pension schemes, today announced it has completed the acquisition of a 50% ownership stake in the new Dumfries and Galloway Royal Infirmary (“DGRI”) from Laing O’Rourke (“LOR”). This acquisition adds to PiP’s existing 50% ownership interest and makes PiP the sole equity owner in the project alongside the Scottish Government, on behalf of its UK pension scheme investors.

The new DGRI was built by LOR as part of the Scottish Government’s Non-Profit Distributing (“NPD”) infrastructure model and became fully operational in December 2017.

Mike Weston, CEO of PiP said “We are pleased to have been able to increase UK pension scheme investment into this high-quality new hospital. It is delivering a great health care service to the residents of Dumfries and Galloway and also now contributing to the long-term retirement income security of thousands of pensioners across the UK.”

Read more about PiP’s involvement in the project to design, build, finance and operate the new £200 million, 350-bed Dumfries and Galloway Royal Infirmary.

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PiP has been a signatory of the UN Principles for Responsible Investment since 2016. As a signatory we are publicly committed to adopting these principles and incorporating them into our investment and ownership activities.

In the most recent reporting cycle, PiP is pleased to report that scores of ‘A’ were achieved in both Strategy & Governance and Infrastructure reporting. These scores have seen improvements over the previous reporting period, which we believe not only illustrates our commitment to incorporating RI and ESG issues into our activities, but also validates our approach to the continual improvement of our investment and asset management practices. As part of this approach, PiP annually publishes its ESG policy, which can be found here.

For more information, see the 2018 UNPRI Assessment MethodologyPiP’s full 2018 Assessment Report, and PiP’s full 2018 Transparency Report.

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The Princess Royal carried out the official opening of the new multi-million pound Dumfries and Galloway Royal Infirmary in southern Scotland. Staff, patients and medical facilities transferred to the hospital in December 2017, which replaced the old facility on the town’s Bankend Road.

Work officially started on the new hospital in June 2015, and the construction phase was completed on budget and on time last year by the High Wood Health consortium.

Read more about the Dumfries and Galloway Royal Infirmary, and PiP’s involvement in the project, here.

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NATIONAL INFRASTRUCTURE ASSESSMENT PUBLISHED

Today, 10 July 2018, the National Infrastructure Commission published its first National Infrastructure Assessment. Read the Assessment, and more, here.

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