Private equity and infrastructure investments surge with a £50bn commitment from notable UK pension funds, as per the Mansion House Accord agreement.
Mansion House Accord: A Bold Step Towards Boosting Private Market Investments
The Mansion House Accord, a UK initiative launched in May 2025, marks a significant commitment by 17 of the country's largest pension providers. Representing approximately 90% of active savers’ defined contribution (DC) pensions, these providers have agreed to increase their allocations to private markets, with a focus on UK-based investments[1][2][3].
The goal of the Mansion House Accord is to commit these pension providers to invest 10% of their default pension assets into private markets by 2030, with at least 5% allocated specifically to UK private markets[1][3]. This includes investments in infrastructure, private equity, private debt, and real estate.
The impacts of this accord are expected to be far-reaching. By increasing pension scheme allocations beyond traditional public markets towards private market investments, pension members could benefit from higher returns, greater diversification, and improved retirement outcomes[1][3].
Moreover, the accord supports the financing of UK infrastructure and private companies, thereby generating broader societal and environmental benefits (known as "additionality" or "double materiality"), such as better places to live and work[1].
The accord also enhances pension schemes' stewardship capabilities by enabling them to hold more concentrated ownership stakes in private companies, thus allowing these schemes to exercise greater influence on company direction compared to their smaller shareholdings in public equities[1].
The accord is also expected to contribute to the UK economy by channeling long-term pension capital into productive domestic assets, aligning with government priorities to reduce reliance on public subsidies for growth financing[2][3][4].
Key participants in the Mansion House Accord include major institutions such as Aviva, Aegon, Legal & General, and Nest, with Liz Fernando, the Chief Investment Officer of Nest, signing the Accord on behalf of Nest[1][2][3].
Recently, Nest has announced its commitment to investing at scale in private markets and in the UK. Currently, 60% of the private market allocation is already invested in the UK[5].
The Mansion House Accord builds on the 2023 Mansion House Compact and is supported by government figures, including the Chancellor Rachel Reeves, who has described the initiative as a "bold step"[2][4].
In addition, the British Business Bank has received FCA approval to launch the British Growth Partnership, which will provide DC pension schemes and institutional investors with access to UK-focused venture capital funds[6].
The Mansion House Accord is a voluntary but significant commitment to redirect a meaningful portion of pension assets into private, especially UK-based, markets, aiming for better returns, economic impact, and enhanced stewardship influence, backed by the largest pension providers in the country and government support. The accord is a significant initiative, joined by colleagues from across the industry, and is expected to unlock capital for clean energy, infrastructure, and high-growth UK businesses.
- The Mansion House Accord, a UK initiative, aims to commit pension providers to invest 10% of their default pension assets into private markets by 2030, with at least 5% allocated specifically to UK private markets, including investments in infrastructure, private equity, private debt, and real estate.
- By increasing pension scheme allocations towards private market investments, pension members could potentially benefit from higher returns, greater diversification, and improved retirement outcomes.
- The British Business Bank has received FCA approval to launch the British Growth Partnership, which will provide DC pension schemes and institutional investors with access to UK-focused venture capital funds.
- The goal of the Mansion House Accord is to support the financing of UK infrastructure and private companies, thereby generating broader societal and environmental benefits.
- Major institutions such as Aviva, Aegon, Legal & General, and Nest, have signed the Mansion House Accord, committing to investing at scale in private markets and in the UK.
- The Mansion House Accord is expected to channel long-term pension capital into productive domestic assets, aligning with government priorities to reduce reliance on public subsidies for growth financing.
