Leading investment institutions are in talks with the British Business Bank and the Office for Investment about the creation of a £1bn fund to drive investment into domestic companies seeking scale-up capital.
The £34bn pension fund has secured planning consent to redevelop a central London site into a large multi-use property site as part of a wider aim to invest in high-quality commercial real estate.
The £68bn master trust is seeking to formalise its four-year-old venture capital and growth equity investment strategy through an extension of its partnership with Schroders.
The London Borough of Lambeth Pension Fund is among several LGPS funds to have backed Schroders Capital’s UK Innovation Long Term Asset Fund, backing domestic venture capital companies.
Aegon and the Natwest Cushon master trust have finalised investments in the British Growth Partnership Fund, contributing to a £200m capital raise for the venture capital vehicle.
The UK’s largest pension fund intends to invest more in the UK residential property sector, with the acquisition following two other significant lending projects.
The government is expected to revise its controversial pension investment “mandation” power, despite peers voting to remove the clause from the Pension Schemes Bill earlier this month.
Trade body Pensions UK has welcomed the vote as “a win for savers”, as members of the House of Lords voted in favour of significant changes to the bill.
Narrowing the mandation clause may not be enough to solve potential trust issues, according to the Association of British Insurers.
Senior representatives from the Office for Investment, the British Business Bank, and the National Wealth Fund sought to flesh out the investment narrative and explain why pension funds should be confident about investing in UK private markets.
The government is taking the right approach to fiduciary duty in planning guidance rather than legislating, according to the chief executive of the Universities Superannuation Scheme (USS).