Major UK pension firms commit £50 billion towards private equity and infrastructure projects under the Mansion House Accord agreement
In a significant move to boost the UK's economic growth, 17 major UK pension schemes have agreed to allocate at least £50 billion to private assets such as infrastructure and growth markets by 2030. The Mansion House Accord, signed at a Treasury roundtable in London, marks a coordinated industry-government effort to channel substantial capital into enhancing UK infrastructure and private markets.
The accord aligns with the government's broader strategy, announced in the 2025 Mansion House speech by Chancellor Rachel Reeves, to boost investment in private markets and infrastructure as part of the Financial Services Growth and Competitiveness Strategy. The Chancellor described the initiatives as a "bold step" that will enhance long-term returns for pension savers.
Pension funds covering most of the Defined Contribution market have pledged to invest at least 10% of their main funds into private assets, with at least half directed to UK-based investments. Key signatories include major institutions such as Aviva, Aegon, Legal & General, and Nest, the government-backed workplace pension scheme.
Businesses such as Tesco, First Group, and Octopus have publicly supported the pension pledge, reflecting cross-sector backing. The accord builds on a larger government framework encouraging pension funds to mobilize capital productively across the economy.
The Mansion House Accord's approach is designed to help drive substantial positive impact for its members and the UK. The accord aims to increase exposure to private equity, infrastructure, and real assets, with each signatory targeting a 10% allocation of their defined contribution (DC) portfolios to private markets, with a minimum 5% committed to UK-based investments.
The British Growth Partnership, an additional initiative separate from the Mansion House Accord, aims to unlock capital for clean energy, infrastructure, and high-growth UK businesses. The British Business Bank has received FCA approval to launch the British Growth Partnership, providing DC pension schemes and institutional investors with access to UK-focused venture capital funds.
The Mansion House Accord's private market allocation currently stands at around 60% in the UK and aims to increase this to 30% in the coming years. The accord also aims to release £25bn into the domestic economy over the next six years. The accord continues to foster partnerships that help tap into investment opportunities in the UK.
The Mansion House Accord builds on the 2023 Mansion House Compact and is supported by the forthcoming final report from the UK Pensions Investment Review, which is expected to recommend further reforms. The accord is backed by pension schemes representing over 90% of workplace DC savers.
Liz Fernando, the Chief Investment Officer of Nest, signed the Mansion House Accord on behalf of Nest. The accord aims to boost economic growth and enhance pension returns, contributing to the UK’s economic and financial sector growth objectives outlined in the 2025 Mansion House event and ongoing reforms.
- The Mansion House Accord, endorsed by Nest's Chief Investment Officer, Liz Fernando, aims to boost economic growth and enhance pension returns by allocating at least £50 billion to private assets like private equity, infrastructure, and real assets.
- Pension funds, including major institutional investors like Aviva, Aegon, Legal & General, and Nest, have pledged to invest at least 10% of their main funds into private assets, with at least half directed to UK-based investments.
- The accord targets a 10% allocation of defined contribution (DC) portfolios to private markets, with a minimum 5% committed to UK-based investments, in an effort to increase exposure to these asset classes.
- The British Business Bank has received FCA approval to launch the British Growth Partnership, providing DC pension schemes and institutional investors with access to UK-focused venture capital funds.
- The Mansion House Accord's private market allocation currently stands at around 60% in the UK and aims to increase this to 30% in the coming years, releasing £25bn into the domestic economy over the next six years.
- The accord continues to foster partnerships that help tap into investment opportunities in the UK, such as the British Growth Partnership, which aims to unlock capital for clean energy, infrastructure, and high-growth UK businesses.
