Key Takeaways
- • Scottish Widows is directing workplace pension savings into U.K. venture growth companies, with Oxford Quantum Circuits and Quantum Motion among its expected initial investments, according to The Quantum Insider.
- • Aberdeen Investments appointed IP Group to oversee a venture growth portfolio within the CG Scottish Widows Growth long-term asset fund (LTAF), which also expects to invest in battery company Nyobolt and healthcare business Genomics Limited.
- • Scottish Widows' default options Lifetime Investment Plus and Lifetime Investment Extra carry about 11% and 23% private markets exposure, respectively, per Corporate Adviser.
- • The mandate targets follow-on funding constraints facing British companies preparing to commercialize technology and scale.
Summary
Scottish Widows, a pensions, investment and insurance provider that is part of Lloyds Banking Group with more than 6 million customers and over £300 billion in assets under administration, has announced its first investments in U.K. venture growth companies through a portfolio overseen by IP Group, according to Corporate Adviser. The initial investments are expected to include quantum computing developers Oxford Quantum Circuits and Quantum Motion, alongside battery technology company Nyobolt and AI-enabled healthcare business Genomics Limited. Scottish Widows says it is among the first workplace pension providers to invest members' money in U.K. venture growth businesses.
The arrangement follows Aberdeen Investments' appointment of IP Group to manage a venture growth portfolio within the CG Scottish Widows Growth LTAF. The company says the mandate aims to improve retirement outcomes while supplying follow-on funding to British companies preparing to commercialize technology and expand. Nalaka De Silva, head of private markets solutions at Aberdeen Investments, said the U.K. has no shortage of scientific excellence or entrepreneurship, but competitive companies have lacked sufficient pools of patient domestic capital to expand. The firms say the arrangement could expand over time to direct more pension capital into growing U.K. businesses.
Scottish Widows said its main default funds will invest in the LTAF. Its Lifetime Investment Plus option has about 11% exposure to private markets, while Lifetime Investment Extra targets 23%, according to Corporate Adviser. Both options are available through the Scottish Widows Master Trust, a multi-employer workplace pension arrangement. Peter Fitzgerald, Scottish Widows' chief investment officer, said the proposition connects workplace pension customers' long-term savings with high-growth companies, providing access to opportunities traditionally available mainly to institutional investors.
The move follows Nest's launch of a 200 million-pound venture capital allocation with Schroders Capital in July, per Corporate Adviser. The announcement also coincided with preparations by Scottish innovation minister Alyn Smith to urge international industry leaders to invest in Scotland's quantum sector at an Edinburgh Castle reception on November 2.
The arrangement follows Aberdeen Investments' appointment of IP Group to manage a venture growth portfolio within the CG Scottish Widows Growth LTAF. The company says the mandate aims to improve retirement outcomes while supplying follow-on funding to British companies preparing to commercialize technology and expand. Nalaka De Silva, head of private markets solutions at Aberdeen Investments, said the U.K. has no shortage of scientific excellence or entrepreneurship, but competitive companies have lacked sufficient pools of patient domestic capital to expand. The firms say the arrangement could expand over time to direct more pension capital into growing U.K. businesses.
Scottish Widows said its main default funds will invest in the LTAF. Its Lifetime Investment Plus option has about 11% exposure to private markets, while Lifetime Investment Extra targets 23%, according to Corporate Adviser. Both options are available through the Scottish Widows Master Trust, a multi-employer workplace pension arrangement. Peter Fitzgerald, Scottish Widows' chief investment officer, said the proposition connects workplace pension customers' long-term savings with high-growth companies, providing access to opportunities traditionally available mainly to institutional investors.
The move follows Nest's launch of a 200 million-pound venture capital allocation with Schroders Capital in July, per Corporate Adviser. The announcement also coincided with preparations by Scottish innovation minister Alyn Smith to urge international industry leaders to invest in Scotland's quantum sector at an Edinburgh Castle reception on November 2.
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