Alastair O'Dell

Higher prospective returns from established renewable assets, emerging opportunities in storage and hydrogen, and the prospect of DB schemes selling infrastructure holdings are creating new opportunities for pension investors.

Pensions minister Torsten Bell has insisted the government remains committed to increasing pension fund investment in UK private markets, despite losing the political battle for sweeping powers to direct pension savings

Some defined benefit pension schemes are reconsidering private markets allocations as they explore running on rather than pursuing buyout, potentially creating opportunities to acquire assets from schemes seeking liquidity, according to Schroders.

Larger UK pension schemes could unlock billions in private markets investment. Research from People’s Pension and Invesco suggests adopting a model that focuses on governance, investment expertise and manager partnerships would support success.

As the investment environment becomes more challenging, LGPS investors are taking a closer look at the risks embedded in their private equity and credit portfolios. Manager selection, diversification and liquidity are coming under greater scrutiny.

An approaching wave of exits from private equity-backed wealth management platforms will test investor appetite and the sustainability of buy-and-build strategies, according to Dyer Baade & Company chief executive Daniel Baade.

As insurers explore new opportunities across structured credit and AI infrastructure, Standard Life’s Michela Bariletti argues that understanding underlying risks and maintaining underwriting discipline are essential to finding value.

Solvency UK has opened up new investment opportunities for insurers, but Marsh Investments’ Joshay Harkoo argues that the ability to exploit them will increasingly depend on governance, operational capabilities and effective risk management.

The growing scale of LGPS investment pools is creating new opportunities for strategic partnerships, co-investment and specialist expertise, although greater responsibilities are also creating fresh challenges.

Longer retirements and the growth of guided retirement are challenging conventional approaches to DC de-risking, as schemes consider how much investment risk members should continue to take after they stop working.

Longer retirements can support continued allocations to private markets, but decumulation places greater emphasis on cashflows, liquidity and the ability to respond to changing member needs.

The definition of infrastructure is expanding rapidly as digitalisation and the energy transition create new investment opportunities. PIC’s Radim Radkovsky explains why investors increasingly need to look beyond the physical asset to the cash flows and underlying risks.