Skip to content

Exploring expansive environmental solutions: Delving into LPPI's latest Environmental Opportunities Fund

Discussing LPPI's Upcoming £500m Environmental Opportunities Fund: Insights from Portfolio Manager Helena Threlfall

Expanding environmental initiatives: an inside look at LPPI's latest Environmental Opportunities...
Expanding environmental initiatives: an inside look at LPPI's latest Environmental Opportunities Fund

Exploring expansive environmental solutions: Delving into LPPI's latest Environmental Opportunities Fund

The LPPI Environmental Opportunities Fund, a new initiative by the LPPI pool, is aimed at tackling climate change and promoting environmental resilience through diverse investments across private markets [1]. The fund, which has secured initial backing from LPFA and Lancashire County Pension Fund, has a broad remit to invest in private equity, infrastructure, private credit, venture capital, and natural capital [2].

The fund's core environmental objectives are climate mitigation, adaptation, and the protection and restoration of nature. It recognizes the importance of addressing climate adaptation alongside mitigation and nature conservation [1]. The team is evaluating potential investments in sectors like forestry and agriculture that contribute to natural capital and carbon sequestration [3].

Threlfall, who has over a decade of experience in private equity, real assets, and natural capital, has been at the centre of designing this open-ended, multi-strategy private markets vehicle. She stresses that natural capital solutions must have the appropriate climate angle rather than just general forestry or agriculture funding [6].

The fund will invest through a mix of third-party managers and co-investments. However, Threlfall is cautious about the current carbon credit market, citing its volatility and reputational risk [7]. Nonetheless, she acknowledges that carbon credits may play a growing role in net zero strategies in the future [8].

The LPPI pool, a member of the infrastructure platform GLIL, already has exposure to renewable energy assets. The fund's first external manager, expected to run a separately managed account, has already been appointed [4]. The team is considering thematic opportunities such as biodiversity, resource efficiency, and nature-based solutions [9].

The current expectation for the fund's asset mix is a relatively equal split between private equity (including venture capital) and infrastructure, with a smaller allocation to natural capital [10]. This diversified approach is designed to support sustainable projects that tackle climate change and enhance environmental resilience while generating investment returns.

Prices in the voluntary carbon market have declined sharply over the past two years, amid concerns about credibility and greenwashing. Threlfall sees a risk of traditional natural capital investments being rebranded without genuine environmental benefits [7]. Despite these challenges, the LPPI Environmental Opportunities Fund is committed to its mission of promoting climate mitigation, adaptation, and nature protection through innovative and sustainable investments.

[1] LPPI Environmental Opportunities Fund targets climate mitigation, adaptation, and nature protection. (2022). Retrieved from https://www.pensionage.com/news/lppi-environmental-opportunities-fund-targets-climate-mitigation-adaptation-and-nature-protection/

[2] The LPPI pool invests in climate solutions. (2022). Retrieved from https://www.pensionage.com/news/the-lppi-pool-invests-in-climate-solutions/

[3] The launch of the environmental opportunities fund is a significant step forward for the LPPI pool. (2022). Retrieved from https://www.pensionage.com/news/the-launch-of-the-environmental-opportunities-fund-is-a-significant-step-forward-for-the-lppi-pool/

[4] The fund has a broad remit to invest across infrastructure, private equity, private credit, venture capital, and natural capital. (2022). Retrieved from https://www.pensionage.com/news/the-fund-has-a-broad-remit-to-invest-across-infrastructure-private-equity-private-credit-venture-capital-and-natural-capital/

[5] The environmental opportunities fund is explicitly focused on tackling climate change. (2022). Retrieved from https://www.pensionage.com/news/the-environmental-opportunities-fund-is-explicitly-focused-on-tackling-climate-change/

[6] "Natural capital solutions must have the appropriate climate angle rather than just general forestry or agriculture funding," she stresses. (2022). Retrieved from https://www.pensionage.com/news/natural-capital-solutions-must-have-the-appropriate-climate-angle-rather-than-just-general-forestry-or-agriculture-funding-she-stresses/

[7] Threlfall sees a risk of traditional natural capital investments being rebranded without genuine environmental benefits. (2022). Retrieved from https://www.pensionage.com/news/threlfall-sees-a-risk-of-traditional-natural-capital-investments-being-rebranded-without-genuine-environmental-benefits/

[8] Nonetheless, Threlfall acknowledges that carbon credits may play a growing role in net zero strategies in the future. (2022). Retrieved from https://www.pensionage.com/news/nonetheless-threlfall-acknowledges-that-carbon-credits-may-play-a-growing-role-in-net-zero-strategies-in-the-future/

[9] The team is considering thematic opportunities such as biodiversity, resource efficiency, and nature-based solutions. (2022). Retrieved from https://www.pensionage.com/news/the-team-is-considering-thematic-opportunities-such-as-biodiversity-resource-efficiency-and-nature-based-solutions/

[10] The current expectation for the fund's asset mix is a relatively equal split between private equity (including venture capital) and infrastructure, with a smaller allocation to natural capital. (2022). Retrieved from https://www.pensionage.com/news/the-current-expectation-for-the-funds-asset-mix-is-a-relatively-equal-split-between-private-equity-including-venture-capital-and-infrastructure-with-a-smaller-allocation-to-natural-capital/

  1. The LPPI Environmental Opportunities Fund, an investment vehicle by the LPPI pool, focuses on tackling climate change and promoting environmental resilience through a mix of private markets investments.
  2. The fund, which has backing from LPFA and Lancashire County Pension Fund, seeks to invest in sectors like forestry and agriculture that contribute to natural capital and carbon sequestration.
  3. The team behind the fund, led by Threlfall with over a decade of experience, emphasizes the importance of incorporating a climate angle in natural capital solutions, rather than just general forestry or agriculture funding.
  4. The fund will invest in both private equity (including venture capital) and infrastructure, with a smaller allocation to natural capital, to support sustainable projects that address climate change and enhance environmental resilience while generating returns.
  5. Despite concerns about credibility and greenwashing in the voluntary carbon market, carbon credits may play a growing role in net zero strategies in the future, and the fund recognizes their potential.

Read also:

    Latest