Investment Strategy
Local Pensions Partnership Investments (LPPI) manages approximately $25 billion in pension assets on behalf of its partner Local Government Pension Scheme funds. Originally established as a collaboration between the London Pensions Fund Authority (LPFA) and Lancashire County Pension Fund, LPPI has grown to serve additional LGPS partner funds seeking professional investment management through a pooling arrangement.
LPPI operates as an FCA-regulated investment management company, providing end-to-end investment services including strategic advice, portfolio management, manager selection, and operational support. The organization manages pooled investment vehicles across public equities, fixed income, real estate, infrastructure, private equity, and private credit.
The investment philosophy emphasizes long-term value creation, cost efficiency, and responsible investment. LPPI aims to generate risk-adjusted returns that meet the actuarial requirements of its partner funds while maintaining appropriate diversification and liquidity. The pooled model enables partner funds to access institutional-quality investment strategies at lower aggregate costs than they could achieve independently.
LPPI’s governance structure separates strategic asset allocation decisions (retained by individual partner funds) from investment implementation (managed by LPPI). This allows each partner fund to maintain its own risk and return objectives while benefiting from shared investment management infrastructure.
Private Markets Approach
LPPI’s private markets program is a core component of its investment offering, providing partner funds with diversified exposure to private equity, infrastructure, real estate, and private credit through pooled vehicles.
The private equity program invests globally through commitments to buyout, growth equity, and co-investment opportunities. LPPI selects managers based on track record quality, strategy differentiation, team stability, and operational capability. The program seeks to build a diversified portfolio across geographies, strategies, and vintage years to manage concentration risk and smooth return patterns.
Infrastructure is a significant allocation, reflecting the strong alignment between infrastructure assets and pension fund liabilities. LPPI’s infrastructure program invests in core and core-plus assets spanning energy, transportation, utilities, digital infrastructure, and social infrastructure. The program includes both UK and international opportunities, with particular interest in assets providing inflation-linked income streams.
Real estate exposure is managed through a combination of direct UK property holdings and fund-based investments. LPPI’s real estate program spans commercial, industrial, and residential property, with attention to both income generation and capital growth.
Private credit has been developed as a distinct allocation within the partnership, providing exposure to direct lending, asset-backed strategies, and special situations. This allocation serves as an income diversifier and offers a premium over traditional investment-grade fixed income.
How to Approach
Fund managers should engage directly with LPPI’s investment team in London. The team manages all aspects of manager selection, due diligence, and commitment decisions for the partnership’s pooled private market programs.
LPPI evaluates managers through a structured process that considers track record, strategy quality, team depth, operational infrastructure, fee competitiveness, and ESG integration. The team is accessible and attends major UK and European institutional investor conferences.
GPs should review LPPI’s published responsible investment policies and annual stewardship reports to understand the partnership’s expectations for ESG practices. Alignment with LPPI’s RI framework is an increasingly important factor in manager selection decisions.
Frequently Asked Questions
How much does Local Pensions Partnership Investments allocate to alternatives?
LPPI targets approximately 18% of its pooled assets in alternative investments. The alternatives program spans private equity, infrastructure, real estate, and private credit, managed through dedicated pooled vehicles for partner funds. LPPI's founding partners are the London Pensions Fund Authority and Lancashire County Pension Fund, with additional partner funds joining the arrangement.
How can fund managers approach LPPI?
Fund managers should approach LPPI's investment team directly in London. The team manages manager selection and portfolio construction across all asset classes for the partnership's pooled vehicles. LPPI runs structured allocation processes for its private market programs and evaluates managers on track record, strategy fit, operational quality, and alignment with the partnership's responsible investment commitments.
What is LPPI's typical commitment size?
LPPI's commitments to individual private market funds typically range from $30 million to $150 million, reflecting the combined capital of its partner funds. The pooled structure gives GPs access to a meaningful check size while providing each partner fund with appropriate diversification across managers and vintages.
