Key Takeaways
- • Mercer will commit £350m from its UK workplace savings solutions, including its master trusts, to a newly launched Schroders Mercer Private Assets Growth long-term asset fund (LTAF).
- • The LTAF is intended to increase members' access to private market investments, according to Professional Pensions.
- • The fund is expected to go live in the first quarter of 2026, subject to Financial Conduct Authority approval.
- • Target LTAF allocations reportedly comprise 50% private equity, 25% infrastructure equity and 25% liquid assets, primarily listed equities.
Summary
Mercer has announced that its UK workplace savings solutions, including its master trusts, is set to commit £350m to a newly launched Schroders Mercer Private Assets Growth long-term asset fund (LTAF). The commitment is aimed at widening members' access to private market investments, according to Professional Pensions. Mercer said the LTAF is expected to receive an initial investment commitment of £350m from Mercer UK's master trusts in its first year, as reported by a separate publication.
The Schroders Mercer Private Assets Growth LTAF is expected to go live in the first quarter of 2026, subject to approval from the Financial Conduct Authority. Coverage describes the fund as a bespoke vehicle built for Mercer's workplace schemes, positioning it as the primary channel for those members' private markets exposure.
According to a Mercer blueprint for private markets in defined contribution (DC) schemes, the target LTAF allocations comprise 50% in private equity, 25% in infrastructure equity and 25% in liquid assets, primarily listed equities. Citywire also reported the £350m commitment.
The move reflects growing use of LTAFs by UK defined contribution providers seeking private market exposure within pension default structures. Investors were reminded that the value of investments may go down as well as up.
The Schroders Mercer Private Assets Growth LTAF is expected to go live in the first quarter of 2026, subject to approval from the Financial Conduct Authority. Coverage describes the fund as a bespoke vehicle built for Mercer's workplace schemes, positioning it as the primary channel for those members' private markets exposure.
According to a Mercer blueprint for private markets in defined contribution (DC) schemes, the target LTAF allocations comprise 50% in private equity, 25% in infrastructure equity and 25% in liquid assets, primarily listed equities. Citywire also reported the £350m commitment.
The move reflects growing use of LTAFs by UK defined contribution providers seeking private market exposure within pension default structures. Investors were reminded that the value of investments may go down as well as up.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.