Mercer commits £350m to private markets for UK workplace pensions

Mercer, part of Marsh McLennan, will invest £350m in the new Schroders Mercer Private Assets Growth Long-Term Asset Fund (LTAF) for its UK workplace savings solutions, including its master trusts. 

The fund is expected to go live in early 2026, subject to approval from the Financial Conduct Authority (FCA).

The LTAF will be managed by Schroders Capital, with Future Growth Capital Limited as the delegated investment manager. 

Mercer representatives will join a joint investor advisory committee for ongoing governance. 

The fund will allocate capital to investment mandates from Mercer, Schroders Capital and third-party managers.

It will be the main vehicle for private market allocations for the Mercer Master Trust and now:pensions Master Trust. 

Trustee boards want to allocate at least 10% of default pension fund assets to private markets by 2030, with at least 5% invested in the UK. 

The LTAF will sit in the growth portfolios and focus on private equity and infrastructure equity, while holding listed equities to meet liquidity needs. 

It will also target UK-based growth opportunities.

Phil Parkinson, wealth practice leader at Mercer UK, said: “Mercer, combined with the now:pensions Master Trust, collectively manages billions of assets and has global private markets research and implementation capabilities. 

“Working together allows both master trusts to have larger allocations to private market asset classes with the potential for higher returns.

“Private markets have moved from the margins to the mainstream – adding diversification and innovation.”

Parkinson added: “The LTAF aims to provide access to growth-focused private equity and infrastructure equity assets, helping to enhance long-term returns and support better retirement outcomes.”

Dame Susan Langley, Lady Mayor of the City of London, said: “Mercer and now:pensions are taking real steps to deliver on the ambition of the Mansion House Accord. 

“A commitment of this size to a long-term vehicle focused on UK growth will help deliver better returns for savers and strengthen our position as one of the world’s most competitive investment markets. 

“It reflects a great confidence in Britain’s future.”