Pensions & Private Capital Expert Panel Interim Report

Both the DC pensions industry and the private capital industry have committed to working together to develop solutions to the issues which currently prevent these opportunities being realised.

The commitment is underpinned by two significant statements of intent: the Mansion House Compact, initiated in July 2023, has brought together 11 of the UK’s largest DC pension providers, who have agreed to invest 5% of their default funds under management to unlisted equities by 2030. Separately, the Investment Compact for Venture Capital & Growth Equity has been signed by over 100 venture capital and growth equity firms who have committed to working with the pensions industry to clear the pathways to that investment. These commitments have been the focus of an industry-led collaborative project which has been underway since the start of 2024 - this is the interim report on the progress to date.

The Pensions & Private Capital Expert Panel (‘Expert Panel’), which is made up of senior representatives of both the DC pensions and private capital industries, has led this work. Supported by the BVCA, ABI and PLSA, the participants began by developing a shared understanding of the existing barriers for DC pension schemes that wish to invest in venture capital and growth capital in the UK. This was published in PwC's Report to the Expert Panel in February 2024.

As a result of this programme of work, the Expert Panel is now setting out its interim recommendations for a series of structural, technical and wider policy options designed to contribute towards better outcomes for UK savers in DC pension schemes and greater investment in high growth businesses in the UK. The recommendations are designed to assist industry, policymakers, regulators and other stakeholders to develop solutions to the public policy challenges of enhanced pension prospects and improved economic growth.