Smart Pension has committed to invest 15% of its default fund in private markets by 2030, above the 10% commitment recently agreed by the UK’s largest pension providers as part of the Mansion House Accord.

This contribution will represent up to £4bn of Smart Pension’s projected assets under management by 2030.

Smart Pension’s assets are on track to be worth over £9bn by the end of 2025, and the master trust is projecting continued significant growth to reach £25bn of assets by 2030.

This pledge, which will be fully implemented within 12 – 18 months, will see Smart Pension build on its 5% commitment to private credit, with an additional 5% invested in private equity and venture capital, and a further 5% invested in renewable energy.

Smart Pension said its investment in private equity and venture capital will include primaries, secondaries and co-investments. This investment strategy will be managed by a leading fund manager, with access to some of the strongest VC and PE funds across the globe.

Through these new investments, Smart Pension’s investment will also contribute to early-stage technologies in agriculture, clean energy, health, digital, smart cities, the circular economy, and the blue economy, among other areas.

Smart Pension recently joined sixteen of the largest workplace pension providers in the UK to invest at least 10% of its defined contribution (DC) default funds in private markets as part of the Mansion House Accord.

Jamie Fiveash, CEO of Smart Pension, said: “As one of the largest and fastest growing workplace pension providers in the UK, as well as a UK fintech growth story, we are proud to commit significant capital to support large-scale projects with innovative British businesses that will drive sustainable growth for the country.”

Fiveash added that private markets can provide opportunities for greater and more sustainable returns for savers because they include long-term projects that have previously been inaccessible to our sector.

He continued: “We are happy to be one of the UK master trusts leading the way in this space and leave a legacy not only for our members, but also for the country’s critical infrastructure and businesses.”

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Pamela is IPE's UK correspondent. Before joining IPE in May 2023, she spent five years writing about the insurance industry. During her career so far she won awards for Most Promising Newcomer in 2020 and Best Investigative Article in 2022 from the British Insurance Brokers Association, and was also highly commended at the WTW Media Awards for Insurance Features Journalist of The Year.View full Profile

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