Master trust makes move to provide access to critical growth sectors of UK economy
Smart Pension will invest 15% of its flagship growth fund in private markets under a new investment strategy unveiled today, a move that significantly exceeds its existing private credit allocation and the voluntary Mansion House Accord.
The UK workplace pension provider, which manages more than £6bn in assets for 1.5 million members, will direct up to £4bn of projected AuM by 2030 into private equity, venture capital, renewable energy and private credit. The full allocation will be implemented over the next 12 to 18 months.
Smart Pension’s CEO Jamie Fiveash said the strategy aims to back innovative British companies and long-term infrastructure projects that can deliver sustainable returns for members.
“Private markets can provide opportunities for greater and more sustainable returns for savers because they include long-term projects that have previously been inaccessible to our sector,” he said in a statement. “We are happy to be one of the UK master trusts leading the way in this space.”
Of the 15% allocation, 5% will go into private equity and venture capital, 5% into renewable energy and 5% into private credit, doubling its exposure to the asset class. Smart will target UK growth sectors including life sciences, university spinouts and deep tech.
The move follows Smart Pension’s participation in the Mansion House Accord, an industry initiative launched in 2023 under which leading DC pension providers agreed to allocate at least 10% of default funds to unlisted equities by 2030. Fiveash described the new strategy as a “bold commitment” that shows confidence in both private markets and the broader UK economy.
Pensions minister Torsten Bell praised the announcement, saying it would help channel more capital into infrastructure and high-growth businesses. “This announcement will drive more investment in infrastructure and high-growth businesses across the country, delivering growth for local communities and better returns for savers,” he said.
Smart Pension said it worked with Mobius Life to design the private market strategies and selected managers to deliver bespoke solutions without requiring high liquidity or Long-Term Asset Fund (LTAF) structures.
Founded in 2015, Smart Pension serves over 90,000 employers and is backed by investors including Aquiline, Barclays, Chrysalis Investments, DWS Group, Fidelity International Strategic Ventures, J.P. Morgan, LGIM, MUFG and Natixis Investment Managers.