Pension capital needs a clearer route to local investment
Author: LAPF Investments | Published: May 18, 2026
Pension capital needs clearer, end-to-end pathways that connect pension capital to investable UK opportunities, according to Pensions UK.
It follows a new report from the pensions trade body that sets out what needs to happen in practice to enable pension schemes to invest more in UK growth assets, and drive good outcomes for savers.
It comes a year on from the signing of the Mansion House Accord, a voluntary commitment by 17 of the UK’s largest pension providers which would increase overall investment in unlisted assets – both in the UK and globally. As part of the Accord, the government committed to help build a pipeline of investable opportunities.
Despite this, Pensions UK’s report suggests there is more work to do.
In an evaluation of four key public finance institutions’ readiness to support pension funds to invest in the UK, the British Business Bank has made the most tangible progress to date in creating an investable route – including through the British Growth Partnership.
However, while other institutions – namely the National Wealth Fund, Homes England, and Great British Energy – show willingness, there is more work to do.
The report also cites barriers to investment from Pensions UK members, with insufficient risk-adjusted returns, a lack of suitable opportunities and policy uncertainty among those highlighted.
It’s accompanied by a separate call to action for government, regulators, public finance institutions and the pensions industry.
Among these is a call for clearer end-to-end pathways that connect pension capital to investable UK opportunities – supported by coordinated government action – as well as institutions that can bring scalable vehicles to market, and regulation that enables long-term investment decisions focused on value as well as cost.
Pensions UK’s executive director of policy and advocacy Zoe Alexander: “Pension schemes are already major investors in the UK, supporting economic growth – but more practical, coordinated action by government and agencies is needed to support their efforts to keep scaling those investments.
“Schemes need a diverse range of investable routes that are consistent with fiduciary duty, and deliver good outcomes for savers.
“A year on from the delivery of the Mansion House Accord, this report sets out the practical steps needed so that public finance institutions, regulators and industry can work together to connect long-term pension capital with a clearer, more investable pipeline of UK opportunities.”
