Local Pensions Partnership Investments (LPPI) has launched a new fund to enable its clients to invest in climate solutions and initiatives.
The LPPI Environmental Opportunities Fund (the fund) is an open-ended solution which aims to invest in private market assets that contribute towards climate mitigation, climate adaptation, and the protection, restoration, and sustainable management of nature.
Helena Threlfall has been appointed as Portfolio Manager for the fund. Helena is an experienced private markets investor, investing across private equity and real assets for over 15 years. She also sits on the board of the Institutional Limited Partners Association – an industry body for private equity investors – and served 12 years on the Investment Committee for Lucy Cavendish College, University of Cambridge.
Helena is supported by LPPI’s 40-strong private markets team, which manages one of the largest portfolios in the LGPS, with over £10 billion in the ground across private equity, private credit, infrastructure and real estate.
Helena Threlfall, Portfolio Manager of the LPPI Environmental Opportunities Fund, said:
“LPPI has a long track record of investing in private markets. Building on this approach, the fund is strategically focused on helping our clients to invest in an increasing opportunity set of climate investments.
“After close collaboration with clients and a thorough analysis of the investment universe, we have created a thematic multi-asset fund which complements our whole scheme management model and gives us the flexibility to consider a range of different asset types such as infrastructure, private equity, venture capital and natural capital to achieve the environmental objective of the fund.
“Sitting alongside LPPI’s other asset class-based investment pooling vehicles, the fund has an open-ended structure, providing the flexibility for future allocations”.
According to McKinsey and Company, transitioning to a low carbon economy by 2050 will require approximately $275 trillion, or $9.2 trillion per year on average in new capital spending. Consequently, LPPI believes that decarbonisation offers a significant investment opportunity for pension funds.
Helena added:
“Climate solution investing is bolstered by secular tailwinds, including the proliferation of corporate, government and investor net zero commitments driving favourable demand dynamics, further supported by regulation. There are opportunities in both established solutions such as renewable energy, as well as significant innovation in new climate technologies.”