UK pension funds have increased allocations to private markets, though levels still trail the ambitions set by Chancellor Rachel Reeves, according to a report by Bloomberg citing data from the Association of British Insurers.
Among the 11 firms that signed the Mansion House Compact, exposure to unlisted equities in defined-contribution default funds rose to 0.6% in February compared to 0.36% a year earlier – equivalent to an increase from £800m to £1.6bn.
The growth reflects early progress in channeling long-term savings into private market assets. However, the figures remain short of the government’s target of a 5% holding in unlisted equities by 2030. Structural barriers and cost constraints continue to slow adoption.
Only four of the 11 Mansion House Compact firms view their clients as supportive of the measures, down from seven last year.
