What Border to Coast Has Flagged
Life Sciences as a Priority within the UK Opportunities Strategy
Border to Coast — the investment pool managing pensions for multiple Local Government Pension Scheme (LGPS) funds in the UK — has identified UK life sciences as one of the key investment opportunities going into 2026. This forms part of its “UK Opportunities” strategy designed to direct capital into productive domestic assets that can deliver long-term returns and foster economic growth. (Professional Pensions)
- The UK life sciences sector — which includes biotechnology, pharmaceuticals, medical devices, and research infrastructure — is seen as a high-growth area. It benefits from strong underlying demand drivers, ongoing innovation, and the UK government’s long-term industrial strategy focus on science and technology sectors. (Professional Pensions)
Strategic Investments & Allocations
£80m Commitment in 2025
As part of its UK Opportunities strategy, Border to Coast committed £80 million in April 2025 across two areas: UK life sciences real estate and renewable energy infrastructure. (Professional Pensions)
- £40m was allocated to the UBS UK Life Sciences Property Strategy — aimed at building specialist property infrastructure needed by research, development and manufacturing firms within the life sciences ecosystem, particularly in the “Golden Triangle” (Oxford, Cambridge, London). (Professional Pensions)
- The remaining £40m supported renewable energy projects (e.g., wind and solar), complementing the life sciences commitment but underscoring Border to Coast’s broader thematic approach. (Professional Pensions)
These allocations were part of a broader £500m UK Opportunities pool and built on over £1bn already invested in UK private markets. (Professional Pensions)
Additional Life Sciences Exposure
In later UK Opportunities portfolio deployments, Border to Coast also made further commitments into later-stage UK life sciences companies through specialist funds, such as the Advent Life Sciences Growth Fund, targeting pharmaceuticals, vaccines, and medical technology growth. (Professional Pensions)
Why Life Sciences? Sector Drivers & Rationale
Border to Coast’s focus on life sciences isn’t random — there are clear structural reasons:
1. Strong Demand for Specialist Infrastructure
- Life sciences firms often require purpose-built facilities for R&D, clinical testing and manufacturing. Investments in these real estate assets can generate stable, long-term returns while helping to support UK innovation clusters. (Border To Coast)
2. Innovation and Growth Potential
- The UK life sciences sector has benefited from decades of world-class research institutions and rising private and public spending on health-related innovation. Border to Coast’s allocations aim to capture growth in these emerging and scaling companies, especially where financing gaps exist. (Professional Pensions)
3. Long-Term Return and Economic Impact
- By investing in life sciences, pension funds like Border to Coast seek risk-adjusted returns over long horizons while supporting job creation, manufacturing capability, and broader economic value within the UK. (Professional Pensions)
Comments & Commentary from Officials
Border to Coast Executives
- Joe McDonnell, Chief Investment Officer at Border to Coast, has noted that UK Opportunities investments offer both strong risk-adjusted return potential and long-term positive impact — benefits that pensions and their members can enjoy beyond purely financial returns. (portfolio institutional)
Partner Pension Fund Views
- Paul Cooper, Head of Pensions at Durham County Council Pension Fund (a Border to Coast Partner), emphasised that investment outcomes are expected to deliver sound financial returns and community impact — an objective particularly relevant for life sciences and related sectors. (Border To Coast)
How This Fits Within Border to Coast’s Broader Strategy
Border to Coast’s UK life sciences focus forms part of a long-term shift toward UK direct and thematic investments:
- The UK Opportunities strategy covers a range of sectors beyond life sciences, including energy transition, direct lending to growing SMEs and other real economy opportunities. (Professional Pensions)
- The partnership is also expanding — set to include 18 LGPS funds by 2026 with more than £110bn in assets under management — increasing its capacity to deploy capital into targeted sectors like life sciences. (Pensions Age)
- Border to Coast continues to publish case studies showing how its investments support UK growth while aligning with long-term pension liabilities. (Border To Coast)
Summary: What This Means for 2026
| Aspect | Detail |
|---|---|
| Key Focus | UK life sciences flagged as a priority investment opportunity |
| Strategic Driver | Strong growth prospects, infrastructure needs, and innovation potential |
| Recent Allocations | ~£40m to life sciences property strategies within UK Opportunities |
| Broader Impacts | Job creation, economic value, and long-term pension returns |
Here’s a comprehensive, case-study-style overview of Border to Coast Pensions Partnership’s focus on the UK life sciences sector as a key investment opportunity for 2026, with concrete examples of investments, commentary from leaders, and illustrative case studies showing how this strategy is being implemented and why it matters.
Border to Coast’s Life Sciences Investment Strategy
Strategic Context
Border to Coast — the Local Government Pension Scheme (LGPS) investment pool — has increasingly directed capital into UK productive sectors, including life sciences, through its dedicated UK Opportunities strategy. This approach aims to:
- Deliver strong, long-term risk-adjusted returns for pension members.
- Support UK economic growth, innovation, and infrastructure.
- Address gaps in investment financing for high-growth sectors. (Border To Coast)
Border to Coast recently identified the UK life sciences sector as one of the most promising areas for investment opportunity going into 2026, citing the depth of innovation and long-term fundamentals underpinning the industry. (Professional Pensions)
Case Study 1 — Life Sciences Real Estate with UBS UK Life Sciences Property Strategy
What Happened
In 2025, Border to Coast committed £40 million to the UBS UK Life Sciences Property strategy. (Border To Coast)
Why It Matters
- Life sciences companies require specialised, energy-efficient real estate for research, development, and manufacturing — particularly around the “Golden Triangle” of Cambridge, Oxford, and London, one of the UK’s most dynamic innovation regions. (Border To Coast)
- These facilities are expensive and in short supply; investing in property that underpins this ecosystem helps meet growing demand while positioning Border to Coast to benefit from long-term rental and capital growth potential.
Impact
- Supports the infrastructure backbone that life sciences firms depend on — from lab space to manufacturing facilities.
- Helps avoid bottlenecks in space availability that can slow sector expansion.
Case Study 2 — Private Equity Investments in Growth-Stage Life Sciences
Border to Coast’s UK Opportunities strategy has also expanded into direct private equity commitments targeting growth-stage life sciences companies. (Professional Pensions)
Examples
- Advent Life Sciences Growth Fund: Border to Coast invested £22.5m into this fund designed to back later-stage UK life sciences companies. (Professional Pensions)
- HSBC UK Senior Direct Lending Fund II: A £24.3m commitment that will provide senior debt to high-growth UK SMEs, benefitting innovative life sciences firms transitioning from earlier venture capital backing to scaling operations. (Professional Pensions)
Why This Matters
- These types of investments support scaling companies that are too mature for venture capital but not yet candidates for public markets.
- By participating early, Border to Coast gains exposure to potential future leaders of the UK life sciences ecosystem.
Leadership Commentary
Border to Coast Executives
- Joe McDonnell, Chief Investment Officer, emphasised that investments in UK life sciences and related infrastructure are examples of the UK Opportunities strategy in action, aiming to both boost economic capacity and deliver good long-term returns for Partner Funds. (Border To Coast)
Partner Fund Perspectives
- Paul Cooper, Head of Pensions at Durham County Council Pension Fund — one of Border to Coast’s partner schemes — highlighted that the strategy allows for impactful investment that supports communities as well as meets financial objectives. (Border To Coast)
Why Life Sciences is a Key Opportunity
1. Growing Global Demand
Life sciences remains a fast-growing global sector, driven by innovation in biotechnology, pharmaceuticals, and health technologies. The UK in particular benefits from a strong research base and world-class universities.
2. Infrastructure and Innovation Needs
There’s a persistent undersupply of purpose-built life sciences real estate in the UK — from labs to specialised manufacturing facilities — which creates long-term demand for institutional investment. (Border To Coast)
3. Long-Term Growth Potential
Border to Coast’s allocation aims to tap into structural growth drivers — including demographic shifts (aging populations), rising R&D investment, and healthcare innovation cycles.
4. Supporting a Competitive UK Sector
Research from groups like the Society for Chemical Industry shows that the UK life sciences sector has experienced lost investment opportunities relative to competitors, highlighting the importance of domestic capital to retain innovation and jobs. (Society of Chemical Industry)
Illustrative Sector Impact
Here are real-world examples of the kind of environment supporting this investment thesis:
- Major global firms like BioNTech have announced significant UK expansions — e.g., £1bn investment in new research and manufacturing hubs — citing the UK’s innovation ecosystem. (Reddit)
- Government efforts like strategic life sciences funding and industrial policy are designed to maintain UK competitiveness in biotech and pharma. (The Times)
These broader developments show a conducive backdrop for capital deployed by institutional investors like Border to Coast.
Summary: What This Means for 2026
| Element | Detail |
|---|---|
| Investment Focus | UK life sciences — infrastructure and growth firms |
| Key Allocations | £40m life sciences property + commitments into growth-oriented funds |
| Strategic Rationale | Strong demand for specialised assets, innovation growth, long-term returns |
| Economic Impact | Potential job creation, support for UK innovation clusters, and broader economic stimulus |
Bottom Line
Border to Coast’s emphasis on the UK life sciences sector for 2026 reflects a belief in the sector’s growth potential and strategic value. Through real estate, direct equity, and lending vehicles, the partnership is positioning its Partner Funds to benefit financially while potentially supporting the UK’s broader ambition to remain a global competitive life sciences hub. (Border To Coast)