The LGPS & Private Capital: An Evolving Landscape

Across the UK, there is now a clear and welcome recognition that pension schemes and private capital firms should be working more closely together. That view is shared by Government, the pensions industry, and by private capital investors themselves. It reflects a simple but powerful proposition: that better access to private capital funds can help pension savers benefit from diversified long-term returns to improve their retirement prospects, while also supporting the growth of innovative and ambitious businesses that benefit wider society across the country.

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.

The report highlights the opportunities and practical challenges of increasing private market investment and sets out recommendations informed by the work of the Expert Panel to support greater access to private capital across the LGPS, while delivering long-term value for scheme members and supporting UK innovation and economic growth.