Key Takeaways
- • Mansion House Accord signatories held £11.1bn in UK private markets at the end of last year, according to joint tracking by the Association of British Insurers (ABI) and Pensions UK.
- • UK assets represent more than half of the £22bn in defined contribution (DC) growth-phase assets the 17 signatories have invested in global private markets.
- • Property and real estate, including social and affordable housing, account for £8bn of UK private market investment, followed by infrastructure at £1.3bn and private debt and credit at £0.9bn.
- • Signatories have signed further deals worth £3bn for UK private markets, on top of the £11.1bn already invested.
- • The collective target is 10 per cent of DC pension assets in private markets, including 5 per cent in UK private markets, by 2030.
Summary
Signatories to the Mansion House Accord held £11.1bn in UK private markets at the end of last year, according to joint tracking by the Association of British Insurers (ABI) and Pensions UK. The UK allocation accounts for more than half of the £22bn in defined contribution (DC) growth-phase assets the signatories have invested in global private markets.
The Accord is a voluntary, industry-led commitment coordinated by the ABI, Pensions UK and the City of London Corporation. Seventeen pension funds have signed, including Aegon UK, Aon, Aviva, Legal & General and M&G. Its goal is for signatories to hold 10 per cent of DC pension assets in private markets, including 5 per cent in UK private markets, by 2030.
By sector, property and real estate, including social and affordable housing, has attracted the most private capital in the UK, with £8bn invested. Infrastructure received £1.3bn and private debt and credit received £0.9bn. In addition, signatories have signed deals for a further £3bn of UK private market allocations.
The ABI and Pensions UK said firms are at different stages of implementation. Signatories have entered new asset manager partnerships, established private market vehicles and structures, and built in-house investment capability through recruitment and training. Yvonne Braun, director of long-term savings and health and protection policy at the ABI, called the progress "a welcome and important milestone" and said it shows the industry is delivering on its goal of supporting better outcomes for pension savers while financing UK homes, infrastructure and businesses.
Braun cautioned that sustaining momentum depends on a strong pipeline of investable UK opportunities, government support to overcome regulatory barriers, and a shift across the workplace pension market away from a narrow focus on cost towards long-term value for savers. Zoe Alexander, chief policy officer at Pensions UK, said changes under the government's new value for money framework and greater co-ordination between Whitehall and public finance institutions should help accelerate private market investment.
The Accord is a voluntary, industry-led commitment coordinated by the ABI, Pensions UK and the City of London Corporation. Seventeen pension funds have signed, including Aegon UK, Aon, Aviva, Legal & General and M&G. Its goal is for signatories to hold 10 per cent of DC pension assets in private markets, including 5 per cent in UK private markets, by 2030.
By sector, property and real estate, including social and affordable housing, has attracted the most private capital in the UK, with £8bn invested. Infrastructure received £1.3bn and private debt and credit received £0.9bn. In addition, signatories have signed deals for a further £3bn of UK private market allocations.
The ABI and Pensions UK said firms are at different stages of implementation. Signatories have entered new asset manager partnerships, established private market vehicles and structures, and built in-house investment capability through recruitment and training. Yvonne Braun, director of long-term savings and health and protection policy at the ABI, called the progress "a welcome and important milestone" and said it shows the industry is delivering on its goal of supporting better outcomes for pension savers while financing UK homes, infrastructure and businesses.
Braun cautioned that sustaining momentum depends on a strong pipeline of investable UK opportunities, government support to overcome regulatory barriers, and a shift across the workplace pension market away from a narrow focus on cost towards long-term value for savers. Zoe Alexander, chief policy officer at Pensions UK, said changes under the government's new value for money framework and greater co-ordination between Whitehall and public finance institutions should help accelerate private market investment.
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