Key Takeaways
- • Mercer UK's master trusts will commit an initial £350m to the Schroders Mercer Private Assets Growth LTAF, a bespoke long-term asset fund focused on private markets, according to Pensions Age.
- • The LTAF is expected to go live in the first quarter of 2026, subject to Financial Conduct Authority approval, and will be launched by Schroders Capital with Future Growth Capital Limited as delegated investment manager.
- • The fund will initially sit within master trust growth portfolios and focus its illiquid allocations on private equity and infrastructure equity, with listed equities held for liquidity.
- • The commitment aligns with trustee ambitions to allocate at least 10 per cent of default fund assets to private markets by 2030, including a minimum 5 per cent in the UK, under the Mansion House Accord.
Summary
Mercer has announced that its UK workplace savings solutions, including its master trusts, will invest an initial £350m in the Schroders Mercer Private Assets Growth LTAF, a bespoke long-term asset fund focused on private markets. According to the announcement reported by Pensions Age, the fund is expected to launch in the first quarter of 2026, subject to approval from the Financial Conduct Authority. Mercer said the move is designed to broaden pension scheme members' access to private market investments.
The LTAF will be launched by Schroders Capital under its LTAF umbrella, with Future Growth Capital Limited acting as delegated investment manager. Mercer representatives will sit on a joint investor advisory committee to support ongoing governance. Further allocations are anticipated over time, and the fund is expected to become the primary vehicle for private market allocations across Mercer UK's workplace arrangements, including the Mercer master trust and the now:pensions master trust.
Initially, the fund will sit within the growth portfolios of the master trusts and focus its illiquid investments on private equity and infrastructure equity, which Mercer said trustee boards view as best placed to deliver strong long-term returns, improve diversification and support better retirement outcomes. The LTAF will also hold listed equities to meet liquidity requirements and is expected to allocate a meaningful proportion of capital to UK-based growth opportunities.
The commitment supports the trustee boards' ambition to allocate at least 10 per cent of default fund assets to private markets by 2030, with a minimum of 5 per cent invested in the UK, in line with their commitments as signatories to the Mansion House Accord. Mercer UK wealth practice leader Phil Parkinson said the combined scale of Mercer and now:pensions assets, alongside Mercer's global private markets expertise, would allow the master trusts to make larger allocations with the potential for higher returns. City of London Corporation Lady Mayor Dame Susan Langley described the commitment as demonstrating "tangible progress" in delivering the Mansion House Accord's ambitions.
The LTAF will be launched by Schroders Capital under its LTAF umbrella, with Future Growth Capital Limited acting as delegated investment manager. Mercer representatives will sit on a joint investor advisory committee to support ongoing governance. Further allocations are anticipated over time, and the fund is expected to become the primary vehicle for private market allocations across Mercer UK's workplace arrangements, including the Mercer master trust and the now:pensions master trust.
Initially, the fund will sit within the growth portfolios of the master trusts and focus its illiquid investments on private equity and infrastructure equity, which Mercer said trustee boards view as best placed to deliver strong long-term returns, improve diversification and support better retirement outcomes. The LTAF will also hold listed equities to meet liquidity requirements and is expected to allocate a meaningful proportion of capital to UK-based growth opportunities.
The commitment supports the trustee boards' ambition to allocate at least 10 per cent of default fund assets to private markets by 2030, with a minimum of 5 per cent invested in the UK, in line with their commitments as signatories to the Mansion House Accord. Mercer UK wealth practice leader Phil Parkinson said the combined scale of Mercer and now:pensions assets, alongside Mercer's global private markets expertise, would allow the master trusts to make larger allocations with the potential for higher returns. City of London Corporation Lady Mayor Dame Susan Langley described the commitment as demonstrating "tangible progress" in delivering the Mansion House Accord's ambitions.
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