VC funds still waiting for Mansion House commitments to materialise
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 collected comprehensive feedback from 83 venture capital and growth equity firms in April and May 2026 asking about their experience engaging with UK DC pension funds. It found that, while engagement is happening between pension funds and private capital, the pace of securing commitments is slow. UK Private Capital found:
- UK Private Capital have only identified two legally binding commitments to VC funds by UK DC default funds aligned with the Mansion House Compact.
- Only six firms reported being in active negotiations with Mansion House signatories “with a view to securing a binding commitment”.
- Three quarters (76%) of respondents felt that they had not been able to engage meaningfully with DC pension providers.
- A large majority of firms (73%) also felt that the government needs to do more to facilitate investment into private capital.
UK Private Capital found that the limited progress has impacted perceptions of the Mansion House agenda negatively, with almost half (48%) of respondents not optimistic that Mansion House agreements will deliver greater investment by 2030, compared to just 20% who were optimistic.
The association will be highlighting the findings at its annual Accelerate Conference on Wednesday 20 May, with Technology Secretary Liz Kendall MP also set to speak at the event.
In 2023, the Mansion House Compact secured commitments from eleven of the largest workplace pension providers in the UK to invest at least 5% of their defined contribution (DC) default funds in unlisted equities by 2030. This was followed by the Mansion House Accord in 2025, which saw seventeen DC schemes commit to investing 10% of default funds in private markets by 2030, with 5% of the total allocated to the UK.
The Compact and Accord build on growing consensus amongst government, the pensions industry and private capital that increasing investment into venture capital and growth equity can deliver diversification and the opportunity for stronger returns for savers. In addition to benefits for savers, increasing investment in venture and growth equity would address the significant gap in scale-up capital needed for promising British businesses to grow and become internationally competitive.
Progress on the agenda has been slow and UK pension schemes continue to lag well behind their global peers in terms of private capital asset allocation. ABI data measuring progress against the Mansion House Compact since 2023 shows that, as of February 2025, only 0.6% of DC default funds were invested in unlisted equities, while UK Private Capital’s latest Report on Investment Activity shows that in 2025, British private capital received 16.5 times more foreign investment than domestic investment.
Government has attempted to build momentum through the Pension Schemes Act which will consolidate pension funds so they are more able to invest in private capital and introduces powers that can be used by government to compel Mansion House Accord signatories to invest in the asset class, subject to certain conditions being met.
UK Private Capital is calling on Government to continue to press for momentum on the pensions investment agenda and adopt further measures to drive progress. It has developed proposals to connect pensions decision makers with leading firms in the market, through an official accreditation process. Dubbed NOVA, the proposals are seen as a way to help pension funds identify investible opportunities. It is also continuing to convene figures from across the industries to break down barriers to investment in the asset class.
NOVA draws on the experience of the successful Tibi scheme in France, which the Labour Party endorsed in its 2024 financial services strategy while in opposition. Since Tibi’s launch in 2020, the scheme has successfully attracted approximately €12–13 billion in commitments from long-term investors.
“Only a small number of venture capital and growth equity funds have received any investment from any UK pension funds so far, despite efforts from both the pensions and private capital industry.
“Most of the firms we spoke to told us that the process was slow, unclear, and that many pension providers are simply not yet equipped to invest in the asset class. While government has made a welcome push for momentum with the passing of the Pension Schemes Act, there needs to be a much greater sense of urgency if the Mansion House agreements are to be successful.”
Notes to Editors:
UK Private Capital contacted 130 venture capital and growth equity firms as part of its third annual Investment Compact Signatory Survey, which ran between 9 April and 7 May 2026, receiving 83 responses.
Findings will be published in UK Private Capital’s new report Venture Capital in the UK 2026.
For further information, please contact:
UK Private Capital Press Office
Email: [email protected]
Background
About UK Private Capital
UK Private Capital is the industry body and public policy advocate for the private equity (PE), venture capital (VC) and private credit ecosystem in the UK. With a membership of 600 firms, we represent UK-based private capital firms, as well as their professional advisers and a large base of UK and global investors. The private equity, venture capital and private credit industry has a vital role to play in driving national and regional growth. Currently over 13,000 companies, employing more than 2.5 million people, are backed by private capital investment in the UK.
