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This report examines the evolving relationship between UK DC pensions and private capital at a pivotal moment for both sectors. It reviews recent market and policy developments, progress and remaining barriers to private market investment, and draws on the work of UK Private Capital’s DC Pensions & Private Capital Expert Panel to set out practical recommendations for turning shared ambition into sustained investment.

This report explores the evolving relationship between the LGPS and private capital amid significant reform and growing ambition for UK investment. Developed through engagement with the UK Private Capital LGPS Expert Panel, alongside discussions with LGPS pools, administering authorities, private capital managers and other stakeholders, it examines how recent policy and pooling reforms are shaping investment strategies, governance arrangements, and approaches to local and regional growth.

This guide is designed to help private capital firms navigate the UK pensions landscape and understand how DC pension schemes make investment decisions. It provides a practical overview of DC scheme governance, regulation and the opportunities and challenges of investing in private markets.

New reports published by UK Private Capital with input from leading figures in the pensions and private capital industries state that it is time to begin accelerating investment by UK pension funds into private capital.

This UK Private Capital podcast episode explores the important issue of pensions investment in private capital and how recent changes in the UK pensions system – including the Mansion House Agreements and Pensions Schemes Act - could deliver more investment into businesses across the UK.

Mads Jensen, Managing Partner at Superseed, highlights the need to move away from an overly risk-averse culture across the economy in order to support economic growth. Mads calls on the new Burnham Government to embrace a “return to risk” across pension schemes and the broader financial services industry, in order to deliver greater returns and unleash the UK’s full economic potential.

UK Private Capital has found that, despite commitments from UK defined contribution (DC) pension funds to increase allocations into venture capital and growth equity, there is limited evidence of any significant investment into the asset class – with firms describing it as difficult to engage with pension funds.

UK Private Capital’s Senior Policy Manager for Pensions, Karen Hurst, provides her insights on the passage of the Pensions Schemes Bill, following a long period of ‘ping-pong’ between the House of Commons and the House of Lords. Karen discusses compromises made to the mandation power, and positive changes to scale requirements and a value for money framework that UK Private Capital has long called for.

Harry Raikes, Head of UK Venture Investments at Schroders discusses the building momentum for UK pension reform over the last decade. Harry describes how the UK’s push to channel pension capital into high-growth companies is gaining traction, with early allocations to venture capital signalling a shift from policy ambition to practical implementation.

We are seeing a developing industry shift from focusing solely on cost to embracing long-term value and truly recognising the win-win proposition that stands before both the Venture Capital and Pension industries. This evolution is increasingly evident in how Pension Schemes are beginning to approach their investment decisions. The move towards a Value for Money framework is a welcome development. This framework is less about comparing fees and more about understanding the quality of returns over time for savers who depend on these funds for their retirement. Such an approach is vital if we are to create a truly sustainable investment landscape. 

The issue of getting more UK pensions fund investment into private capital is one the BVCA has long championed. However, it has become something of a hot topic in recent years, with both the last and the current Government increasingly seeing that it's a conundrum that, if resolved, provides solutions to two challenges keeping them up at night: the lack of UK growth and a pending retirement crisis.

Leaders from the pensions and private capital industries have issued new recommendations on how to facilitate UK DC pensions to invest in private capital, and how the Government can support this aim – boosting investment in fast growing British businesses and helping UK pension savers access potentially higher returns. 

This final report sets out the recommendations and key findings of the Pensions and Private Capital Expert Panel.This work builds on the Expert Panel’s interim report, published in September 2024. As highlighted in that report, the UK’s world-leading private capital fund industry offers a huge opportunity for UK DC pension savers to benefit from greater investment in the country’s innovative growth companies.

This week, Leon de Bono, the BVCA’s Managing Director for industry development reflects on a recent visit to North America, made in preparation for the BVCA’s LP roadshow next taking place in February 2025. Leon found many industry leaders on the other side of the pond are keeping a close eye on how Chancellor Rachel Reeves is reforming the UK’s pensions system to encourage more investment into business and infrastructure.

The Expert Panel’s interim recommendations call for a series of structural, technical and wider policy options designed to contribute towards better outcomes for UK savers in DC pension schemes and greater investment in high growth businesses in the UK. The recommendations are designed to assist industry, policymakers, regulators and other stakeholders to develop solutions to the public policy challenges of enhanced pension prospects and improved economic growth.

There is a shared determination across government, the pensions industry and the world of private capital to unlock investment by UK pension funds in VC and Growth equity firms. The impact of doing so could be transformative for savers and the businesses that are ultimately invested in. Overseas pensions funds that invest in private capital enjoy impressive returns.