Key Takeaways
- • Border to Coast has deployed more than £1bn across specialist private market funds since April 2025, with commitments distributed across infrastructure (£515m), private equity (£500m), and private credit (£58m) as part of its £18bn private markets programme.
- • The Local Government Pension Scheme (LGPS) pool achieved an average 28% cost reduction for Partner Funds through the scale and benefits of its pooled private markets strategy.
- • Series 3A of the programme secured £2.5bn in total commitments from Partner Funds, demonstrating continued institutional appetite for diversified private markets exposure.
- • Border to Coast has accessed co-investment opportunities previously unavailable to LGPS funds, including a joint venture with American Electric Power via partnership with KKR Diversified Core Infrastructure Fund and a North American road project with Meridiam, offering enhanced global diversification and risk-adjusted return potential.
- • The expanded private markets programme reflects Border to Coast's strategic pivot toward long-term asset diversification and positioning LGPS funds to capitalize on global infrastructure, growth equity, and credit opportunities at institutional scale.
Summary
Border to Coast Pensions Partnership has completed a significant tranche of commitments across its £18bn private markets programme, deploying more than £1bn of capital to specialist funds since April 2025. The deployment represents the latest phase of the LGPS pool's broader strategy to expand Partner Fund exposure to diversified private market asset classes, complementing existing public market and climate-focused investment strategies.
The capital was sourced from Series 3A of the programme, which attracted £2.5bn in commitments from Partner Funds. Border to Coast's in-house private markets team has systematically allocated capital across three primary asset classes: infrastructure (£515m), private equity (£500m), and private credit (£58m). This diversified approach underscores the pool's commitment to balancing yield generation, growth potential, and risk management across the private markets landscape.
A critical competitive advantage has emerged from the pooling structure: Border to Coast has negotiated an average 28% cost reduction for Partner Funds compared to pursuing private markets investments independently. This fee compression reflects the negotiating power inherent in a £18bn asset base and demonstrates tangible value delivery for LGPS stakeholders. Beyond fee efficiency, the scale of the pool has unlocked access to institutional co-investment opportunities historically restricted to larger pension funds and sovereign wealth funds. Notably, Border to Coast has partnered with KKR Diversified Core Infrastructure Fund to jointly acquire a venture with American Electric Power, and with Meridiam to co-invest in a North American road infrastructure project. These opportunities offer superior risk-adjusted return potential and enhanced geographic diversification that would be difficult or impossible to access at smaller fund levels.
The programme expansion reflects broader institutional trends toward private markets allocation among UK pension schemes, particularly within the LGPS ecosystem where pooling has become the regulatory and operational standard. Border to Coast's ability to maintain momentum in private markets capital deployment, even as public equity volatility and interest rate dynamics reshape portfolio construction decisions, indicates sustained confidence in the long-term risk-return profile of diversified private market exposure.
The capital was sourced from Series 3A of the programme, which attracted £2.5bn in commitments from Partner Funds. Border to Coast's in-house private markets team has systematically allocated capital across three primary asset classes: infrastructure (£515m), private equity (£500m), and private credit (£58m). This diversified approach underscores the pool's commitment to balancing yield generation, growth potential, and risk management across the private markets landscape.
A critical competitive advantage has emerged from the pooling structure: Border to Coast has negotiated an average 28% cost reduction for Partner Funds compared to pursuing private markets investments independently. This fee compression reflects the negotiating power inherent in a £18bn asset base and demonstrates tangible value delivery for LGPS stakeholders. Beyond fee efficiency, the scale of the pool has unlocked access to institutional co-investment opportunities historically restricted to larger pension funds and sovereign wealth funds. Notably, Border to Coast has partnered with KKR Diversified Core Infrastructure Fund to jointly acquire a venture with American Electric Power, and with Meridiam to co-invest in a North American road infrastructure project. These opportunities offer superior risk-adjusted return potential and enhanced geographic diversification that would be difficult or impossible to access at smaller fund levels.
The programme expansion reflects broader institutional trends toward private markets allocation among UK pension schemes, particularly within the LGPS ecosystem where pooling has become the regulatory and operational standard. Border to Coast's ability to maintain momentum in private markets capital deployment, even as public equity volatility and interest rate dynamics reshape portfolio construction decisions, indicates sustained confidence in the long-term risk-return profile of diversified private market exposure.
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