Local Pensions Partnership Investments (LPPI), the £27bn (€32bn) investment pool for three funds in the local government pension scheme (LGPS), has launched a private markets vehicle focused on investment opportunities generated by decarbonisation efforts.

The LPPI Environmental Opportunities Fund is an open-ended solution that aims to invest in private market assets that contribute towards climate mitigation, climate adaptation, and the protection, restoration, and sustainable management of nature.

LPPI manages the assets of Lancashire County Pension Fund, the London Pensions Fund Authority and the Royal County of Berkshire Pension Fund. It said that, on the basis of discussions with these funds about a strategic asset allocation to the new climate solutions fund, it is targeting an initial commitment of £500m.

The Environmental Opportunities Fund will be managed by Helena Threlfall, who joined LPPI last June and also sits on the board of private equity industry body, the Institutional Limited Partners Association.

Helena Threlfall, Portfolio Manager of the LPPI EOF

Helena Threlfall, portfolio manager for LPPI’s Environmental Opportunities Fund

She said: “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.”

“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,” Threlfall continued.

She added: “There are opportunities in both established solutions such as renewable energy, as well as significant innovation in new climate technologies.”

The Environmental Opportunities Fund is LPP’s eighth pooling vehicle, coming alongside those for global equities, fixed income, infrastructure, real estate, private equity, credit and alternatives.

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Susanna is deputy news editor at IPE. At IPE she covers responsible investment and EU regulation, but also enjoys reporting on developments in and around the UK pensions industry. Having been a financial journalist since 2008, Susanna started her career as a corporate governance/corporate social responsibility analyst at proxy advisory firm PIRC.View full Profile

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