Marvin OnumonuSmart Pension has launched a new investment strategy that will see 15% of its main growth fund invested in private markets.
This will put up to £4bn of its assets under management by 2030 into private markets across the UK.
This move supports the Government’s aim to channel more pension savings into national infrastructure and private businesses.
With more than 1.5 million members, the new approach will give members more opportunities to benefit from UK assets in sectors such as life sciences, university spin-offs, and deep tech.
This pledge, which will be fully implemented within 12 to 18 months, will see Smart Pension build on its well-established 5% commitment to private credit, with an additional 5% invested in private equity and venture capital, and a further 5% invested in renewable energy.
Jamie Fiveash, CEO of Smart Pension, said: “As one of the largest and fastest growing workplace pension providers in the UK, as well as a UK fintech growth story, we are proud to commit significant capital to support large-scale projects with innovative British businesses that will drive sustainable growth for the country.
“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.
“We are happy to be one of the UK master trusts leading the way in this space and leave a legacy not only for our members, but also for the country’s critical infrastructure and businesses.”
Pensions Minister Torsten Bell said: “I welcome Smart Pension going above and beyond the voluntary Mansion House Accord to deliver for savers.
“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.”
