Key Takeaways
- • Workplace pension providers that signed the Mansion House Accord held £11.1 billion in UK private markets at the end of 2025, according to the first progress report on the commitment by the Association of British Insurers (ABI) and Pensions UK.
- • The 17 signatories held £22.1 billion of defined contribution (DC) growth-phase assets in private markets globally, equal to 6.6% of DC growth-phase assets, with 3.3% in the UK.
- • Property and real estate, including social and affordable housing, accounted for £8 billion of the UK holdings, while infrastructure took £1.3 billion, private debt and credit £0.9 billion, and private equity £0.5 billion.
- • Signatories have committed a further £3 billion to UK private markets that has yet to be deployed, with the main constraint cited as a lack of suitable large-scale UK investment opportunities.
- • The Accord targets 10% of DC default fund assets in private markets by 2030, including 5% in the UK, so current UK exposure is roughly two-thirds of the way to the 5% goal with five years remaining.
Summary
Workplace pension providers that signed the Mansion House Accord held £11.1 billion in UK private markets at the end of 2025, according to the first progress report on the commitment, jointly tracked by the Association of British Insurers (ABI) and Pensions UK. The 17 signatories held a total of £22.1 billion of defined contribution (DC) growth-phase assets in private markets globally as of December 31, 2025, equivalent to 6.6% of DC growth-phase assets, of which 3.3% was in the UK.
The Accord is a voluntary, industry-led initiative co-ordinated by the ABI, Pensions UK and the City of London Corporation. It aims for signatories to hold 10% of DC default fund assets in private markets by 2030, including 5% in the UK, subject to fiduciary and regulatory duties. Most UK allocations have gone into property, with property and real estate, including social and affordable housing, accounting for £8 billion. Infrastructure received £1.3 billion, private debt and credit £0.9 billion and private equity £0.5 billion, indicating that diversification into infrastructure and private equity remains at an early stage. Signatories have also agreed deals to invest a further £3 billion in UK private markets that has not yet been deployed. The report said firms are at different stages, with signatories forming new asset manager partnerships, setting up private market vehicles and building in-house investment teams over the past year.
The Accord builds on the 2023 Mansion House Compact, under which firms aimed to put at least 5% of DC default funds into unlisted equities by 2030. The two frameworks are measured differently and are not directly comparable. In the 10 months to the end of 2025, beginning in March 2025 when the Accord started, Compact signatories raised unlisted equity investment in DC default funds from £1.6 billion to £2.7 billion, lifting the allocation from 0.6% to 0.85%.
Signatories identified the main constraint as a shortage of suitable UK investments. Sustaining momentum will depend on a strong pipeline of investable opportunities, government help in removing regulatory barriers, and a shift in the workplace pension market away from a narrow focus on cost. Dr Yvonne Braun, director of long-term savings and health and protection policy at the ABI, said progress would depend on "a strong pipeline of investable opportunities and a shift across the workplace pension market away from a narrow focus on cost and towards long-term value for savers." Zoe Alexander, chief policy officer at Pensions UK, said the government's new value for money framework and better co-ordination with public finance institutions should help accelerate private market investment.
The private markets push faces a headwind from fixed income. Moody's said this month that UK government bond yields have reached levels not seen since 1998, which it said is increasing life insurers' allocations to gilts and slowing investment in higher-risk assets such as private credit.
The Accord is a voluntary, industry-led initiative co-ordinated by the ABI, Pensions UK and the City of London Corporation. It aims for signatories to hold 10% of DC default fund assets in private markets by 2030, including 5% in the UK, subject to fiduciary and regulatory duties. Most UK allocations have gone into property, with property and real estate, including social and affordable housing, accounting for £8 billion. Infrastructure received £1.3 billion, private debt and credit £0.9 billion and private equity £0.5 billion, indicating that diversification into infrastructure and private equity remains at an early stage. Signatories have also agreed deals to invest a further £3 billion in UK private markets that has not yet been deployed. The report said firms are at different stages, with signatories forming new asset manager partnerships, setting up private market vehicles and building in-house investment teams over the past year.
The Accord builds on the 2023 Mansion House Compact, under which firms aimed to put at least 5% of DC default funds into unlisted equities by 2030. The two frameworks are measured differently and are not directly comparable. In the 10 months to the end of 2025, beginning in March 2025 when the Accord started, Compact signatories raised unlisted equity investment in DC default funds from £1.6 billion to £2.7 billion, lifting the allocation from 0.6% to 0.85%.
Signatories identified the main constraint as a shortage of suitable UK investments. Sustaining momentum will depend on a strong pipeline of investable opportunities, government help in removing regulatory barriers, and a shift in the workplace pension market away from a narrow focus on cost. Dr Yvonne Braun, director of long-term savings and health and protection policy at the ABI, said progress would depend on "a strong pipeline of investable opportunities and a shift across the workplace pension market away from a narrow focus on cost and towards long-term value for savers." Zoe Alexander, chief policy officer at Pensions UK, said the government's new value for money framework and better co-ordination with public finance institutions should help accelerate private market investment.
The private markets push faces a headwind from fixed income. Moody's said this month that UK government bond yields have reached levels not seen since 1998, which it said is increasing life insurers' allocations to gilts and slowing investment in higher-risk assets such as private credit.
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