Defined contribution (DC) pension providers invest more than £22bn in private markets and more than half of this in the UK, according to new data.
The 17 signatories to the Mansion House Accord – which was launched in May last year – have allocated 6.6% of total DC growth-phase assets to private markets as of 31 December 2025, data from the Association of British Insurers (ABI) and Pensions UK show.
The accord commits the providers to allocate at least 10% of growth-phase portfolios to private markets by 2030, half of which should be in the UK – subject to fiduciary and regulatory duties and asset availability.
Of the £11.1bn invested in the UK, almost three quarters (72%) is in property and real estate, including social and affordable housing.
On top of the £11.1bn figure, at the start of 2026, the signatories had committed an additional £3bn to UK private markets.
In a joint statement, the ABI and Pensions UK outlined that the 17 firms that signed the accord were “at different stages in their private markets implementation journey”, from boosting their internal teams to entering new asset classes and establishing new mandates.
However, the trade bodies also highlighted the continued need for “a steady supply of investable opportunities” as pension schemes grow.
“Signatories report that the pipeline of UK investable opportunities must continue to be developed to ensure the right quantity and quality of opportunities are available, alongside government support to overcome regulatory barriers, and a greater focus on the overall value investments can deliver for savers rather than cost alone,” the statement said.
‘No room for complacency’ as more assets needed
Yvonne Braun, director of long-term savings and health and protection policy at the ABI, said the data showed that “the industry is delivering on its goal to increase investment in private markets that support better outcomes for pension savers while helping to finance the homes, infrastructure and businesses the UK needs”.
“However, there can be no room for complacency,” Braun added. “Sustaining this momentum will depend on a strong pipeline of investable opportunities and a shift across the workplace pension market away from a narrow focus on cost and towards long-term value for savers.”
Zoe Alexander, chief policy officer at Pensions UK, added that elements of the Value for Money framework – as well as better co-ordination between government and public finance organisations – “should help create the conditions to further accelerate private market investment in future”.
“Unlocking further potential at scale for the industry depends on a strong pipeline of suitable UK investments – with decisions made in pension savers’ best interests.”
“No single organisation is responsible for retirement outcomes. Employers, trustees, advisers and providers all have a part to play in ensuring what will deliver the best retirement outcomes. It’s important that we continue to build a pipeline of credible UK investment opportunities to turn ambition into action.”
“We have the scale and long-term investment horizon to access opportunities across private markets, from innovative businesses to infrastructure, where we believe they can deliver value for members. A strong UK economy and stronger pensions can go hand in hand when investment decisions are driven by members’ interests.”
Mansion House Compact progress ‘disappointing’
The ABI and Pensions UK also provided an update on the Mansion House Compact, signed under the previous Conservative government, which committed signatories to invest 5% of DC default funds in private equity.
Unlisted equity investment in DC default funds grew by 65% in the 10 months to the end of last year, from £1.6bn to £2.7bn. More broadly across DC portfolios, the total invested in private equity reached £7.5bn.
Despite this growth, Michael Moore, chief executive of the private equity trade body UK Private Capital, said it was “disappointing” that new investment in unlisted markets had been “limited”.
Moore said: “There is a lot of work being undertaken by the pensions industry to facilitate more investment into private capital, and we are collaborating closely with them.
“But we are in danger of missing a once-in-a-generation opportunity for sovereign UK leadership in tech and thousands of new jobs in the economy.”
Moore called for the government to “remain focused on the significant risk of missed opportunities for pension savers to get better returns and for British scale-ups to access the capital they need to grow”.
