With pension funds increasingly embracing private markets, the Pensions Management Institute (PMI) has urged trustees to upskill, as private markets demand deeper expertise.
PMI has published a Private Markets Industry Guide to help trustees and pension professionals navigate the growing complexity of private market investments.
Data in the guide shows that private market allocations have nearly tripled across UK pension schemes since 2019, rising from 9% to 26%. Additionally, 16% of private defined benefit (DB) assets are allocated to productive finance, including £119bn (€135bn) in property and other alternatives.
PMI is warning that with this shift comes a demand for deeper expertise, stronger governance, and more sophisticated decision-making.
The guide addresses the challenges head-on, collating expert opinion from market leaders and practical guidance on how to embrace existing opportunities.
It also highlights the increasing importance of private equity, infrastructure, private credit and venture capital in delivering long-term, inflation-protected returns for members.
The guide explores access structures, ESG integration, cost transparency, and the role of scale in unlocking value — offering practical insights for schemes of all sizes. It also addresses the challenges smaller schemes face and outlines collaborative solutions to ensure no scheme is left behind.
Helen Forrest Hall, chief strategy officer at the PMI, said: “Private markets have evolved from niche to increasingly mainstream in recent years, and pension schemes can’t afford to sit on the sidelines. Trustees face tough questions on access, governance and member outcomes. The regulator expects evidence-based decisions, not guesswork.”
Forrest Hall pointed out that investing in private markets demands a higher level of skill, oversight, and strategic thinking from trustees and their advisers.
She said: “We continue to work in partnership with the industry to deliver the education, tools, and support trustees need to confidently navigate this evolving landscape and deliver better outcomes for members.”
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