Pension Funds Agree to Invest 5% Into UK Private Assets

UK pension fund managers have agreed to invest at least 5% of their assets into UK private markets, marking a win for the Labour government that’s seeking to boost the economy by drawing billions of pounds into local startups and infrastructure projects.

Seventeen large pension providers are signing up to the voluntary commitment, which will see them invest at least 10% of defined-contribution default funds in private markets by the end of the decade, according to a statement on Tuesday. Within that allocation, at least 5% of the total will be going to UK private markets, “assuming a sufficient supply of suitable investible assets,” it said.