Investment Strategy
Northern LGPS is a pooling collaboration managing approximately $60 billion in combined pension assets for three of the largest Local Government Pension Scheme funds in England: Greater Manchester Pension Fund, Merseyside Pension Fund, and West Yorkshire Pension Fund. Together, the three funds serve over one million members across the north of England.
Unlike some LGPS pools that operate through a single FCA-regulated entity, Northern LGPS functions as a collaborative partnership. The three funds coordinate investment activity, share expertise, and access pooled strategies while each fund retains its own governance, investment team, and strategic asset allocation framework. This model reflects the scale and sophistication of the three partner funds, each of which has deep internal investment capabilities.
The combined portfolio spans public equities, fixed income, real estate, infrastructure, private equity, and private credit. Each fund’s strategic allocation reflects its own liability profile, maturity, and risk appetite, but the pooling framework enables collaboration on manager selection, fee negotiation, and shared access to investment opportunities.
Northern LGPS has been a prominent advocate for UK infrastructure investment, and the partnership’s GLIL Infrastructure joint venture is one of the most notable LGPS direct infrastructure initiatives. GLIL invests directly in UK infrastructure assets alongside other institutional investors.
Private Markets Approach
Northern LGPS’s private markets capabilities are among the most developed in the UK LGPS system. All three partner funds have built alternatives portfolios over many years, with mature programs spanning private equity, infrastructure, and real estate.
Private equity programs across the three funds have committed to buyout, growth equity, venture capital, and co-investment strategies globally. Each fund has established GP relationships built over multiple fund cycles. Through Northern LGPS, the funds can coordinate on new commitments, share due diligence, and present combined check sizes to managers.
Infrastructure is a distinctive strength of Northern LGPS. The partnership’s GLIL Infrastructure platform invests directly in UK infrastructure assets, including renewable energy, social infrastructure, and transportation. GLIL is jointly owned by the three Northern LGPS funds alongside London Pensions Fund Authority and other institutional investors. This direct infrastructure platform complements fund-based infrastructure commitments made by each partner fund individually.
Real estate exposure across the three funds includes direct UK property holdings, property fund commitments, and international real estate strategies. Each fund maintains its own real estate portfolio reflecting local and national property markets.
Private credit has become an increasingly important allocation for the partner funds, providing diversified income through direct lending, mezzanine, and special situations strategies.
How to Approach
Fund managers can engage with Northern LGPS through multiple channels. The partnership coordinates investment activity across the three funds, and GPs seeking combined commitments should engage with the Northern LGPS framework.
Each partner fund also maintains its own investment team and can be approached individually. Greater Manchester’s team is based in Tameside, Merseyside’s team is in Liverpool, and West Yorkshire’s team is in Bradford. Each team has experienced professionals with deep private markets expertise.
The partnership’s emphasis on UK infrastructure, fee efficiency, and responsible investment should inform how GPs position their strategies. GPs with UK infrastructure opportunities, particularly those aligned with the GLIL platform’s objectives, may find strong alignment with Northern LGPS priorities.
UK pension conferences, LGPS-specific events, and private markets industry gatherings provide channels for relationship building with the Northern LGPS teams.
Frequently Asked Questions
How much does Northern LGPS allocate to alternatives?
Northern LGPS partner funds collectively target approximately 16% of their combined assets in alternatives including private equity, infrastructure, and real estate. The three partner funds — Greater Manchester, Merseyside, and West Yorkshire — are each among the largest LGPS funds in England, with sophisticated internal teams and long track records in private markets investing.
How can fund managers approach Northern LGPS?
Fund managers can engage through the Northern LGPS collaboration framework, which coordinates investment activity across the three partner funds. Each partner fund also maintains its own investment team and can be approached individually. The Greater Manchester team is based in Tameside, Merseyside in Liverpool, and West Yorkshire in Bradford. GPs attending LGPS and UK institutional investor events will find opportunities to build relationships.
What is Northern LGPS's typical commitment size?
Coordinated commitments through Northern LGPS can range from $75 million to $300 million or more across the three partner funds. Individual fund commitments typically range from $25 million to $150 million depending on the fund and strategy. The collective scale of Northern LGPS makes it one of the largest commitment sources within the UK LGPS system.
