Gresham House BSIF strategy successfully raises GBP300m

Gresham House plc (Gresham House) has secured total commitments of GBP300 million for its British Strategic Investment Fund (BSIF), reaching the upper limit of the final fundraising target for this compelling strategy.

BSIF is a real assets portfolio investing in sustainable UK housing and infrastructure, with a focus on the smaller mid-market, via investments in local and regional projects. By investing in projects supporting job creation, improving health and social care or delivering environmental benefits, the BSIF strategy aims to have a positive social or environmental impact on the UK.

The strategy has already deployed capital into projects in the following sectors; renewable energy, battery storage, waste disposal, vertical farming and key worker accommodation.

Since the interim close in September 2019, the strategy has attracted new commitments from the Worcestershire Pension Fund, the Greater Gwent Pension Fund and the West Midlands Pension Fund. This new wave of investment means the strategy’s LP base now consists of six major Local Government Pension Schemes and the GLA’s London Strategic Reserve Fund.

Alongside their commitments to the strategy itself, two LPs have established local co-investment portfolios, allowing them to increase exposure to areas of specific interest within specified regional locations.

Tony Dalwood, CEO of Gresham House plc and BSIF Investment Committee member, says: “I am delighted that despite the current climate of uncertainty and headwinds to the UK economy, we have reached the upper limit of our investment target.

“Our investment philosophy resonates with reputable institutional investors and, increasingly, we are seeing a desire from investors to deliver both positive financial returns alongside the sustainability agenda which BSIF is targeting.”

Paul Middlebrough, Chair of Worcestershire Pension Fund Committee, says: “Not only does BSIF provide much sought-after income streams, the strategy’s differentiated portfolio broadens our alternatives exposure at a time when diversification is crucial. Additionally, we are pleased to be gaining exposure to projects which have positive social and environmental impact in the UK.”

Jill Davys, Assistant Director – Investments and Finance, West Midlands Pension Fund, says: “We view this investment as complementary to our core infrastructure exposure. As we witness increasing demand for alternative sources of income as well as a growing emphasis on ESG credentials, this partnership with BSIF represents a natural fit to also complement the Fund’s growing focus on sustainability.”

Spokesperson on behalf of Greater Gwent Pension Fund says: “This investment is a milestone in the Greater Gwent Pension Fund’s pursuit of infrastructure exposure with a clear emphasis on sustainability. We are pleased to have taken this positive step in investing in the UK infrastructure market and look forward to working with Gresham House for the foreseeable future”.