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Private investment firm LPFA will pour £250 million into green ventures

London Pensions Fund Authority initiates climate-focused actions to safeguard its 100,000 members from the repercussions of global warming.

Investment of £250 million in environmental resources by LPFA
Investment of £250 million in environmental resources by LPFA

Private investment firm LPFA will pour £250 million into green ventures

The London Pensions Fund Authority (LPFA), which manages £8bn in assets, has announced its intention to set a target for climate solutions investments and allocate around 3% of its total value to environmental solutions assets. This strategic move is in line with the LPFA's commitment to becoming a net-zero fund by 2050, following the Institutional Investors Group on Climate Change's (IIGCC) Net Zero Investment Framework.

The £250m allocation will be invested by Local Pensions Partnership Investments (LPPI), a joint venture set up in 2016 to pool resources and improve asset management for UK local government and public sector schemes. The investment will be made via LPPI's newly launched Environmental Opportunities Fund, managed by Helena Threlfall, who stated that the fund is focused on helping clients invest in an increasing opportunity set of climate investments.

The LPFA's decision to invest 3 percent of its total assets in environmental solutions reflects its long-standing interest in private markets. The fund's scope extends beyond traditional asset types, encompassing infrastructure, private equity, venture capital, and natural capital.

Meanwhile, in a separate development, Bridges fund has invested in the UK's Alina Homecare, a healthcare sector company with a social impact focus. The investment marks Bridges fund's continued support for businesses that aim to deliver both financial returns and positive social outcomes.

Elsewhere, Adenia, a private equity firm, has launched an entrepreneurial fund focusing on private equity and startups/scale-ups. This new fund aims to support innovative businesses and contribute to economic growth.

Lastly, Clarmondial and Supernova have collaborated to increase nature-based investments in Indonesia. The partnership aims to help protect and restore Indonesia's rich biodiversity while generating sustainable returns for investors.

These developments underscore the growing trend of institutional investors prioritising sustainable and climate-conscious investments in their portfolios.

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