Investment Strategy
Lancashire County Pension Fund is one of the UK’s larger Local Government Pension Scheme (LGPS) funds, managing approximately $12 billion on behalf of local government employees in Lancashire. The fund’s investments are managed through Local Pensions Partnership Investments (LPPI), a pooling arrangement that consolidates investment management across several LGPS partners.
The investment strategy targets approximately 15% in alternatives including private equity, infrastructure, real estate, and private credit. Through LPPI, the fund accesses a diversified private markets program that benefits from the pooled scale of multiple LGPS partners.
LPPI’s private equity program invests through fund commitments to established buyout and growth equity managers. Infrastructure investments span UK and international assets. Real estate includes direct UK property and international fund commitments. Private credit provides diversified income streams.
How to Approach
GPs seeking access to Lancashire’s pension capital should approach LPPI’s private markets team in London. LPPI manages alternatives programs on behalf of multiple LGPS clients, so establishing a relationship with LPPI provides efficient access to pooled capital.
LPPI evaluates managers based on track record, team quality, strategy differentiation, alignment of interests, and ESG integration. The team attends BVCA events, SuperReturn, and UK institutional investor conferences.
Frequently Asked Questions
How much does Lancashire County Pension Fund allocate to alternatives?
Lancashire County Pension Fund allocates approximately 15% of its portfolio to alternative investments including private equity, infrastructure, real estate, and private credit. The fund invests through the Local Pensions Partnership Investments (LPPI), which manages assets on behalf of Lancashire and other LGPS partners.
How can fund managers approach the fund?
Lancashire's alternative investments are managed through LPPI. GPs should approach LPPI's private markets team in London. LPPI manages pooled investment vehicles for multiple LGPS clients, so establishing a relationship with LPPI provides access to capital from several UK local government pension funds.
What is the LGPS pooling structure?
UK local government pension funds have been consolidating investment management through pooling arrangements. Lancashire is part of the Local Pensions Partnership pool alongside London Pensions Fund Authority and others. LPPI manages the pooled investment vehicles, including private equity, infrastructure, and real estate programs.
