Fundraising - MARCH 2, 2015

Aviva and U.K. PIP launch solar fund

by Drew Campbell

Aviva Investors and the U.K. Pensions Infrastructure Platform have launched a solar photovoltaic fund with Aviva Investors as the fund manager and the PIP as investor. PIP investors include Strathclyde and West Midlands pension funds, the former nationalized Railways Pension Scheme, the British Airways Pension Scheme, the Lloyds TSB fund, and the Pension Protection Fund.

The fund has a hard cap of £250 million ($383.94 million) and first close is expected in second quarter 2015.

The fund is targeting returns of RPI plus 2 percent to 5 percent and aims to deliver predictable, long-term inflation-linked cash flows through investments in small-scale solar PV installations in the United Kingdom. The return objective is to outperform inflation-linked government bonds, with the fund expected to generate quarterly income for pension fund investors.

“We became a founding investor of the PIP because we saw the need for a platform to provide pension schemes with access to the important asset of infrastructure in an affordable and suitable way,” says Alan Goodman, senior portfolio manager with the Pension Protection Fund. “Today’s announcement marks the continued and successful growth of the PIP and we remain committed to this project.”

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