USS invests in Pluto Finance
Universities Superannuation Scheme (USS), the UK’s largest private pension scheme, has invested in Pluto Finance.
USS has made a significant minority investment in Pluto Finance to enable an expansion of the business, as well as committing £75m as a cornerstone investor alongside Pluto’s sixth development lending vehicle, which is targeting a £300m capital raise this autumn.
These funds will be used to provide financing to small to medium (SME) developers delivering new housing in the UK; Pluto has already financed the construction of more than 10,000 homes in the last 10 years.
This new commitment will supplement the existing £840m of institutional capital currently supporting Pluto’s lending activities, funding growth of Pluto’s existing strategies as well as planned new initiatives in commercial and residential investment lending.
Justin Faiz, co-founder of Pluto, said: “We are delighted to be working with USS.
“With its size, long-term perspective and commitment to the UK, USS is the perfect partner to help Pluto with its next phase of growth to become the leading one-stop-shop for all types of UK property finance.
“Its support will allow us to expand our team and move into adjacent lending strategies, whilst maintaining the quick turnaround and flexibility that our borrowers have come to expect from Pluto.
“The USS investment is an incredible endorsement of our hard-working team and our lending track record, of which we are immensely proud.”
Eamon Ray, senior investment director of USS, added: “USS is delighted to have established this strategic partnership with Pluto, highlighting our commitment to long-term investment in the UK particularly in critical sectors such as residential housing.
“The UK faces a chronic housing shortage and the sector requires long term sustainable capital to meet national targets.
“We believe our partnership with a leading specialist in this sector will help bridge this gap in provision whilst providing our members with attractive returns to fund their pensions.”