Posted: 13 May 2025 Resource Type: News Back Seventeen of the largest workplace pension providers in the UK have agreed to invest at least 10% of their defined contribution (DC) default funds in private markets by 2030, with 5% of the total allocated to the UK. The voluntary initiative, known as the Mansion House Accord, has been jointly led by the City of London Corporation, the Association of British Insurers (ABI), and the Pensions and Lifetime Savings Association (PLSA). It is aimed at securing better financial outcomes for DC savers through the higher potential net returns available in private markets. The Accord will also boost investment in the UK through greater support for UK businesses as well as driving funds into major infrastructure projects and clean energy developments. Based on providers’ current investment holdings, total pension assets in the scope of the agreement amount to £252bn. The industry expects this amount to increase over the Accord’s lifetime. The industry expects the amount to increase over the Accord’s lifetime. Signatories to the new commitment include: Aegon, Aon, Aviva, Legal & General, Lifesight, M&G, Mercer, Natwest Cushon, Nest, NOW: Pensions, Phoenix Group, Royal London, Smart Pension, the People’s Pension, SEI, TPT Retirement Solutions, and the Universities Superannuation Scheme (USS). Signatories commit, subject to fiduciary duty and the Consumer Duty, to the ambition of: Allocating at least 10% to private markets across all main DC default funds by 2030; and Within that, at least 5% of the total going to UK private markets, assuming a sufficient supply of suitable investible assets for providers. The Mansion House Accord builds on, rather than replaces, the Mansion House Compact. Continuing industry-led efforts to improve retirement outcomes and now, unlocking long-term investment in UK growth. Signed in July 2023, the Compact has seen a total of 11 signatories commit to the objective of investing 5% of DC defaults in unlisted equities, including venture capital and growth equity, by 2030. For providers signed up to both, progress under the Compact counts towards meeting the Accord’s goals. Together, they represent a staged, voluntary roadmap for reform, supported by government, driven by industry. Barriers to invest in private assets have reduced in recent years thanks to legislative and regulatory reform, as well as operational improvements. However, there are still further opportunities to unlock. Government and regulators will be integral to supporting industry in securing a pipeline of UK investment opportunities and, as well as other measures, facilitating the Value for Money framework. “If we want those firms to scale in the UK, we must ensure they have the capital to do so. This is not just about better pension outcomes, it is about building a more dynamic, competitive investment ecosystem. Delivering long-term, sustainable growth is crucial and the City of London Corporation is delighted to have partnered with industry and Government to bring this ambition to life.” Alastair King, Lord Mayor of London “Through our Plan for Change, we are choosing to back British businesses and British workers. I welcome this bold step by some of our biggest pension funds, which will unlock billions for major infrastructure, clean energy, and exciting startups — delivering growth, boosting pension pots, and giving working people greater security in retirement.” Rachel Reeves, Chancellor of the Exchequer “By making pension savings work harder, we are giving people a double win: better returns for their futures and faster growth for Britain. Through our Plan for Change, we are building a stronger economy and real financial security for millions of working people.” Torsten Bell, Minister for Pensions “As major investors, the pensions industry already plays a vital role in driving growth in the UK and globally. The Accord formalises the industry’s ambition to invest more in private markets to diversify investments, support innovation and infrastructure, and ensure prosperity. “Investments under the Accord will always be made in savers’ best interests. It is now critical that Government supports the industry’s ambition, by facilitating a pipeline of suitable investment opportunities, tackling barriers to investments, and delivering wider pension reforms effectively.” Yvonne Braun, Director of Policy, Long-Term Savings, Health and Protection at the ABI “UK pension schemes already invest billions in UK growth assets. This accord demonstrates the collective ambition of the DC sector to do even more, as well as its confidence that the UK will provide the right opportunities to invest, consistent with schemes' fiduciary duty to members. “The Government in its turn has committed to take action to ensure there is a strong pipeline of investable assets for pension schemes. With everyone playing their part, there is great potential to boost returns for savers while providing vital funding to productive growth areas.” Zoe Alexander, Director of Policy and Advocacy at the PLSA Find out more Signatories Signatories Read the full accord The Mansion House Accord The Mansion House Accord Explore now Frequently Asked Questions Frequently Asked Questions Share: Share to LinkedIn LinkedIn Share to X Share to Facebook Facebook Share to WeChat WeChat Share to WhatsApp WhatsApp Share to Email Email Related content Research Report The UK | a top destination for financial and professional services investment May 2025 - The UK continues to be Europe's most popular destination for foreign direct investment in financial and professional services The UK | a top destination for financial and professional services investment Research Report London RMB Business annual Report May 2025 - The London RMB Business annual Report serves to contribute to the understanding of the London offshore RMB market. 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