Nearly three-quarters of UK defined contribution pension schemes are planning to utilise Long-Term Asset Funds to increase exposure to private markets, driven by policy incentives and evolving product offerings, according to new research.
Almost three-quarters of UK defined contribution pension schemes intend to use Long-Term Asset Funds to gain exposure to private markets, new research shows, as the sector adapts to policy pressure and fresh product supply.
According to a survey conducted by Schroders and Longview Networks of 56 master and single-trust DC schemes representing more than £198bn in assets under management, 74% of respondents expect to raise private markets allocations within growth-phase strategies and 59% expect increases for retirement-phase portfolios. More than half reported that their most recent investment review saw an uplift in private equity exposure, with risk-adjusted returns cited as the principal rationale for the shift.
The survey found appetite for UK-focused investment: over a quarter of schemes plan to devote between 25% and 49% of their private markets allocation to domestic solutions. Respondents also signalled growing allocations to infrastructure and private debt; 40% had recently boosted UK infrastructure exposure and 35% increased private debt holdings. A large majority identified renewable infrastructure as the most attractive net-zero opportunity.
The research comes against the backdrop of government and industry initiatives encouraging greater DC investment in private assets. The Mansion House Accord , a voluntary pact unveiled in May 2025 and signed by 17 major workplace pension providers , calls for 10% of a default fund to be invested in private markets by 2030, with at least half of that directed to UK private assets, according to the Accord document. Signatories include major firms such as M&G, Aviva, NatWest Cushon, Mercer and the Universities Superannuation Scheme. Industry commentary and reporting have noted Chancellor Rachel Reeves has signalled legislation to compel pension investment into private assets if voluntary commitments fall short.
Product development in the market has followed demand. Schroders’ survey respondents identified LTAFs as the dominant vehicle for these allocations, with 69% favouring LTAFs compared with smaller shares opting for SICAVs or ELTIFs. Market moves have underlined that trend: asset managers have launched LTAFs aimed at DC investors, with Schroders Capital bringing forward private equity and energy infrastructure LTAFs in 2024–25, and other groups, including Aegon, securing FCA approvals for multiple LTAFs, industry reporting shows.
Regulatory change has also broadened access to such vehicles. The Financial Conduct Authority relaxed rules in 2023 to allow LTAFs to be offered to a wider set of DC members, enabling pooled investment in less liquid strategies such as venture capital, private debt and infrastructure, according to a briefing from LCP.
Schroders said its survey covers more than 70% of the master trust signatories to the Mansion House Accord, and that most master trusts have either launched their own LTAF or are working with advisers to incorporate illiquid assets, including private equity and private credit, into default strategies.
Ryan Taylor, head of UK DC clients at Schroders, said: “The DC landscape is changing rapidly, and the Pension Schemes Bill and Mansion House Accord will reshape the investment landscape. Our inaugural DC Investment Survey looks at these seismic shifts driving the industry and shaping DC investment. The biggest winner would appear to be LTAFs, with nearly three in four DC schemes planning to structure their private market investments through the investment vehicle. At the same time, more than a quarter plan UK private market allocations, significantly above those encouraged by the Mansion House Accord, suggesting growing momentum behind this investment trend.”
Market observers caution that increased private asset exposure raises implementation considerations for fiduciaries, including liquidity management, valuation governance and cost transparency. Proponents argue that carefully structured long-term pooled vehicles can deliver enhanced returns for savers while channeling capital into UK businesses and infrastructure, a key aim of the Mansion House initiative and of wider government policy.
- https://www.ipe.com/news/majority-of-uk-dc-funds-plan-to-access-private-markets-through-ltafs/10134938.article – Please view link – unable to able to access data
- https://www.ipe.com/news/majority-of-uk-dc-funds-plan-to-access-private-markets-through-ltafs/10134938.article – A recent study by Schroders and Longview Networks reveals that nearly 74% of UK defined contribution (DC) pension schemes intend to invest in private markets via Long-Term Asset Funds (LTAFs). This trend aligns with governmental and regulatory efforts, such as the Pension Schemes Bill and the Mansion House Accord, which advocates for 10% of default fund investments in private markets by 2030, with half allocated to UK assets. The survey encompassed 56 DC schemes managing over £198 billion in assets, with 74% planning to increase private market allocations during the growth phase and 59% during the retirement phase. Additionally, 53% of respondents have recently raised their private equity allocations, citing risk-adjusted returns as the primary motivation. Over a quarter of DC schemes aim to significantly boost their UK private market exposure, with 25-49% of their private market allocations directed towards domestic solutions. The survey also highlighted that 40% of respondents have increased their UK infrastructure exposure, and 35% have enhanced allocations to private debt. A substantial majority (82%) view renewable infrastructure as the most attractive net-zero investment opportunity. The study indicates a growing preference for LTAFs, with 69% of respondents selecting this structure for private market investments, compared to 18% opting for SICAVs and 10% for European Long-Term Investment Funds (ELTIFs).
- https://www.trustnet.com/news/13447684/mansion-house-accord-pension-providers-to-invest-10-of-default-funds-in-private-assets-by-2030 – In May 2025, seventeen major UK workplace pension providers committed to the Mansion House Accord, pledging to invest at least 10% of their defined contribution (DC) default funds in private markets by 2030, with half of this allocation directed towards UK assets. This initiative aims to enhance returns for pension savers and stimulate the UK economy by supporting domestic businesses and infrastructure projects. The Accord builds upon the 2023 Mansion House Compact, which had set a 5% target for private equity investments. Signatories include prominent firms such as M&G, Aviva, NatWest Cushon, TPT Retirement Solutions, now:pensions, Mercer, and others. Chancellor Rachel Reeves plans to introduce legislation to compel pension funds to invest up to £50 billion in private assets if voluntary commitments are insufficient.
- https://www.theguardian.com/business/2025/may/13/uk-pension-funds-investment-british-firms-mansion-house-accord – Seventeen leading UK pension providers have agreed to the Mansion House Accord, committing to invest at least 10% of their defined contribution (DC) default funds in private market assets by 2030, with 5% allocated specifically to UK investments. This voluntary agreement aims to bolster the UK economy by directing funds into domestic businesses, property, and infrastructure projects. The Accord, led by Chancellor Rachel Reeves, is a significant enhancement of the previous Mansion House Compact, which had set a 5% target without specifying UK investments. The signatories, including Aviva, Legal & General, M&G, Phoenix, and the Universities Superannuation Scheme, collectively manage portfolios worth £252 billion, with expectations of growth leading to approximately £740 billion by 2030. The initiative is part of a broader strategy to increase private market investments and support British growth.
- https://alternativecreditinvestor.com/2026/01/02/uk-ltafs-gain-momentum-as-dc-pensions-target-private-markets/ – The UK defined contribution (DC) pension sector is increasingly adopting Long-Term Asset Funds (LTAFs) to access private markets. Several major asset managers have launched LTAFs tailored for DC schemes, offering diversified exposure to private assets such as private equity, private debt, infrastructure, and real estate. For instance, Schroders Capital introduced the Global Private Equity LTAF in September 2024 and the Global Energy Infrastructure LTAF in February 2025. Aegon received FCA approval for three LTAFs within its CG Aegon AM LTAF umbrella, including a Private Credit LTAF launched in March 2025. These developments reflect a growing trend among DC pension schemes to diversify their portfolios and enhance returns by incorporating private market investments through LTAFs.
- https://www.pensionsuk.org.uk/Portals/0/Documents/Policy-Documents/2025/Mansion-House-Accord-May-2025.pdf – The Mansion House Accord is a voluntary commitment by seventeen of the UK’s largest workplace pension providers to allocate at least 10% of their defined contribution (DC) default funds to private markets by 2030, with at least 5% of this allocation directed towards UK private markets. This initiative aims to improve financial outcomes for DC savers by tapping into the higher potential net returns from private market investments and to boost investment in the UK economy. The Accord is subject to fiduciary duties and dependent on supporting actions by the government. The signatories include Aegon UK, Aon, Aviva, Legal & General, LifeSight, M&G, Mercer, NatWest Cushon, Nest, now:pensions, Phoenix Group, Royal London, Smart Pension, the People’s Pension, SEI, TPT Retirement Solutions, and the Universities Superannuation Scheme (USS).
- https://www.lcp.com/en/pensions-benefits/insights/bulletins/pensions-bulletin-202327 – In June 2023, the Financial Conduct Authority (FCA) expanded access to Long-Term Asset Funds (LTAFs) to a broader range of defined contribution (DC) pension scheme members and retail investors. Previously, only auto-enrolment qualifying DC schemes could offer LTAFs as part of their default fund. The new rules allow LTAFs to be offered to scheme members of an auto-enrolment qualifying scheme as a self-select option outside of designated default arrangements and to members of non-auto-enrolment schemes. LTAFs are designed to facilitate pooled investment in assets such as venture capital, private equity, private debt, real estate, and infrastructure, providing DC schemes with greater flexibility to diversify their portfolios and access private market investments.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 2 February 2026. The Mansion House Accord, which encourages DC schemes to invest in private markets, was signed in May 2025. ([pensionsuk.org.uk](https://www.pensionsuk.org.uk/Portals/0/Documents/Policy-Documents/2025/Mansion-House-Accord-May-2025.pdf?utm_source=openai)) The article references recent surveys and developments, indicating timely reporting. However, the specific survey data from Schroders and Longview Networks is not independently verified in the provided sources. This lack of independent verification slightly reduces the freshness score.
Quotes check
Score:
7
Notes:
The article includes direct quotes from Ryan Taylor, head of UK DC clients at Schroders. However, these quotes are not independently verified in the provided sources. The absence of independent verification raises concerns about the authenticity of the quotes. Additionally, the phrasing of the quotes appears consistent with promotional language, which may indicate a lack of originality.
Source reliability
Score:
6
Notes:
The article originates from IPE, a publication focused on institutional investment. While IPE is a reputable source within its niche, it is not as widely recognised as major news organisations. The article references a survey conducted by Schroders and Longview Networks, but the survey data is not independently verified in the provided sources. This lack of independent verification raises concerns about the reliability of the information presented.
Plausibility check
Score:
7
Notes:
The article discusses UK DC pension schemes’ plans to invest in private markets through LTAFs, aligning with the Mansion House Accord’s objectives. However, the specific survey data from Schroders and Longview Networks is not independently verified in the provided sources. The absence of independent verification raises concerns about the accuracy of the claims made. Additionally, the article’s reliance on a single source for survey data without independent corroboration reduces its overall credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information on UK DC pension schemes’ plans to invest in private markets through LTAFs, referencing a survey by Schroders and Longview Networks. However, the survey data is not independently verified in the provided sources, raising concerns about the accuracy and reliability of the information. The reliance on a single source without independent corroboration further diminishes the article’s credibility.