Preqin is currently tracking 141 UK-based institutional investors that are actively investing in infrastructure. Private sector pension funds are the most prominent amongst UK investors, accounting for 37% of the total, and a further 27% of investors are public pension funds; a significant 64% of UK-based infrastructure investors are pension schemes. Other prominent investor types include asset managers (12%) and government agencies (4%).
When looking specifically at UK-based pension plans, 62% invest via an infrastructure-specific allocation, while 20% invest via a private equity allocation and 15% through an allocation to real assets. These investors have a median $3.6bn in total assets under management (AUM) and maintain an average target allocation of 4.5% to the asset class. The average current allocation to infrastructure for UK-based pension funds is 3.1% of total assets.
A number of UK-based public pension schemes have recently made debut infrastructure commitments. The £1.2bn Fife Council Pension Fund for example invested £50mn with Partners Group, the Swiss fund of funds manger. Three other investors looking to make maiden commitments include London Borough of Sutton Pension Fund, Lancashire County Council Pension Fund and Falkirk Council Pension Fund. A further 14 such investors are currently considering making infrastructure investments, suggesting appetite for infrastructure investment is growing amongst UK-based public pension schemes.