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Direct Impact Portfolio

Direct Impact Portfolio (DIP)

DIP is our own, internally managed portfolio.

It specifically targets investments with a local, economic or ESG (environmental, social, governance) impact - though investment returns are its first priority.

We created DIP in 2009 with an initial £5m investment and a capacity of £300m.

DIP now has:

  • over 50 separate fund investments
  • a total value of over £1bn and
  • a target value of 5% of total Fund.

DIP Investments

DIP has a wide remit and is opportunistic.

To date, DIP investments have been in:

  • Infrastructure                              
  • Renewable Energy                      
  • Local Property                            
  • Direct Lending (mostly SME)       
  • Growth Equity Capital                 
  • Venture Capital                                                          
  • Supported Living

 

We publish a quarterly schedule of all DIP investments.

Impact

DIP has achieved the following measurable impacts through its investments to date:

Impact

 

Environmental

Clean Energy Generated

Carbon Reduction (tonnes p.a.)

Sufficient to Power (homes p.a.)

 

636 GWh p.a.

147,000

219,000

Social

Jobs Created

Jobs Sustained

Infrastructure Projects

 

3,900

55,000

682

Governance

PRI - Investment manager  signatories 

 

31/(33)

Local

Local/Scottish Investments

 

>£500m

New Investments

The DIP investment strategy is reviewed every 3 years.

Following the most recent review in 2021 DIP remains open for new investments with the following characteristics:

  • Risk/return profile appropriate for the market sector (minimum return 5% p.a.)
  • Measurable local or ESG impact
  • clear and well developed legal and governance provisions
  • structured appropriately - preference is for multi-asset, multi-investor portfolios in order to mitigate risk
  • target range £30m to £100m (minimum investment £20m)
  • FCA regulated
  • Sterling denominated
  • predominately UK
  • a stable management team with a good business plan and a proven track record in their field
  • other, suitable key investors.

More information on individual DIP investments can be found in our Annual Report and in the Strathclyde Pension Fund Committee's papers.

If you have any questions or would like us to consider an investment proposal with the appropriate characteristics contact us at: SPFO@glasgow.gov.uk