Investment Strategy
LGPS Central manages approximately $55 billion in pooled pension assets on behalf of eight Local Government Pension Scheme funds across the Midlands region of England. The eight partner funds are Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, West Midlands, and Worcestershire pension funds.
Established in 2018 as an FCA-regulated investment management company, LGPS Central provides pooled investment vehicles and professional investment management services to its partner funds. Each partner fund retains control over its strategic asset allocation, while LGPS Central handles investment implementation across public and private markets.
The investment platform covers public equities (UK, global, emerging markets), fixed income, multi-asset credit, real estate, infrastructure, private equity, and private credit. LGPS Central manages through a combination of internal capabilities and carefully selected external managers, with the pooling model delivering fee savings, enhanced governance, and access to a broader range of investment strategies.
LGPS Central’s responsible investment program integrates ESG considerations across all asset classes. The organization has developed a detailed RI framework that informs manager selection, ongoing monitoring, and engagement with portfolio companies and external managers.
Private Markets Approach
LGPS Central’s private markets program provides partner funds with pooled access to private equity, infrastructure, real estate, and private credit. The program has been built out methodically since the organization’s inception, with each asset class managed through dedicated vehicles and allocation cycles.
The private equity program commits to a diversified portfolio of buyout, growth equity, and co-investment opportunities globally. LGPS Central selects managers through structured vintage-year processes, evaluating track records, strategy differentiation, team quality, and operational infrastructure. The program aims to deliver net returns exceeding public equity benchmarks while managing concentration across strategies, geographies, and sectors.
Infrastructure has been a priority for LGPS Central and its partner funds. The infrastructure program targets core, core-plus, and value-add strategies across energy, transportation, utilities, digital infrastructure, and social infrastructure. LGPS Central has shown particular interest in UK-based opportunities and assets supporting the energy transition, reflecting both the liabilities of its partner funds and their responsible investment commitments.
Private credit serves as a complement to traditional fixed income, providing enhanced yield through exposure to direct lending, asset-backed strategies, and special situations. LGPS Central’s credit program has been developed to offer partner funds diversified income streams with appropriate risk management.
Real estate exposure is managed through both legacy partner fund holdings and new pooled vehicles. The program spans UK and international property across commercial, industrial, and residential sectors.
How to Approach
GPs seeking to work with LGPS Central should engage directly with the investment team in Wolverhampton. The team manages structured allocation processes for private market programs, typically running vintage-year cycles for private equity, infrastructure, and credit.
The evaluation process considers track record quality, strategy differentiation, team stability, operational infrastructure, fee competitiveness, and responsible investment integration. LGPS Central publishes its RI policies and annual reports, and managers should review these to understand the organization’s investment priorities.
The team attends major UK institutional investor conferences, LGPS-specific events, and private markets industry gatherings. Building relationships with the LGPS Central team through these channels can complement formal engagement through the structured allocation processes.
Frequently Asked Questions
How much does LGPS Central allocate to alternatives?
LGPS Central's eight partner funds collectively allocate approximately 14% of their combined assets to alternatives. LGPS Central manages pooled private equity, infrastructure, and private credit vehicles on behalf of partner funds including Cheshire, Derbyshire, Leicestershire, Nottinghamshire, Shropshire, Staffordshire, West Midlands, and Worcestershire pension funds. Each partner fund sets its own strategic allocation, with LGPS Central providing the pooled implementation.
How can fund managers approach LGPS Central?
Fund managers should engage with LGPS Central's investment team in Wolverhampton. The team manages structured private market programs and runs allocation cycles where managers are selected through competitive due diligence processes. LGPS Central evaluates GPs on track record, strategy quality, operational capability, fee competitiveness, and responsible investment practices.
What is LGPS Central's typical commitment size?
LGPS Central's pooled commitments to individual private market funds typically range from $50 million to $250 million, reflecting the combined capital of its eight partner funds. This collective scale positions LGPS Central as one of the more significant LP commitments available within the UK LGPS system.
