Eight Local Government Pension Scheme (LGPS) funds have invested in Gresham House’s British Sustainable Infrastructure Fund (BSIF) II.

Announcing the final close of its second sustainable infrastructure fund, Gresham House confirmed that the BSIF II had raised around £450m from a total of 12 investors.

Cornwall Pension Fund and Bedfordshire Pension Fund were the latest backers, joining Worcestershire Pension Fund, Teesside Pension Fund, Staffordshire Pension Fund, Greater Manchester Pension Fund, Torfaen Pension Fund and East Riding Pension Fund.

The diversified nature of the fund is expected to help complement the funds' core infrastructure allocations, with more than £2bn of controlled pipeline within the portfolio.

Portfolio companies supported by the fund include alt-net providers connecting rural communities to gigabit broadband, vertical farms championing innovative agriculture techniques and habitat banks supporting developers to deliver biodiversity net gain, alongside local projects.

To support this pipeline, the £450m funding is expected to be quickly deployed into existing BSIF platforms to deliver the strongest financial impact, while supporting the evolution of a range of sustainability solutions across the UK.

Commenting on the news, Cornwall Pension Fund pensions committee chair, Cllr Jayne Kirkham, said: “It is important to our members that their money is invested responsibly and sustainably.

“By partnering with Gresham House, the pension fund is supporting critical local infrastructure projects, boosting digital connectivity on our doorstep here in Cornwall, alongside other innovative solutions to environmental and social challenges across the UK.”

Adding to this, Gresham House institutional business managing director, Heather Fleming, stated: “Investors are looking for innovative investment opportunities that support regional levelling up and the green agenda in the UK. We are delighted that our twelve investors see BSIF II as the opportunity to drive positive impact.

“We are giving LPs a platform for place-based investment, providing exposure to our portfolio companies and supporting the regions and sectors that most align with their sustainability targets.

"We are proud to empower LGPS investors to make sustainable investments that level up their region, while delivering a strong return on investments.”

BSIF co-fund managers, Peter Bachmann and Simon Adcock, added: “We are very pleased to have welcomed eight new LPs to BSIF II, and believe our focus on impact driving returns will perform well financially whilst capturing the attention of forward-thinking real asset investors.

"BSIF II is the next step for our platform, which we look forward to continuing to scale with future funds.

“With portfolio companies delivering ground-breaking infrastructure solutions across UK regions including gigabit-capable broadband connectivity in Cornwall, innovative waste recycling solutions in the North East and vertical farming in Staffordshire and East Anglia, LGPS and other investors are attracted to the impact their investment can deliver for their communities.”

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