Newcore Capital has achieved first close for its £375m core-plus fund, the Newcore Social Infrastructure Income Fund (NSIIF).
The fund has secured The Parliamentary Contributory Pension Fund, a local government pension scheme and an insurance company client of Capricorn Private Investments – an outsourced investment office – as cornerstone investors and the first close provides NSIIF with £100m of investment capacity to deploy.
The objective of the fund is to deliver sustainable long-term income and capital returns from a functional portfolio of UK real assets enabling essential social infrastructure uses, such as education, childcare, clinical healthcare, transport and waste management. The fund has identified a circa £300m pipeline of potential acquisitions across the UK.
NSIIF will target returns of 9%-11% per annum IRR, with a 4-5% annual dividend. The fund will be semi-open-ended with structured liquidity flows for primary redemption and new capital raising.
Hugo Llewelyn (pictured), CEO of Newcore Capital, said: “We are pleased to have achieved first close for NSIIF, securing three noteworthy institutions as cornerstone investors. This milestone has been achieved against the backdrop of a particularly difficult capital-raising market and demonstrates that a clear three-dimensional focus on sustainability – financial, environmental, and social – can deliver positive results for fund managers, by securing commitments from high quality investors with similar aspirations for their capital.”
