Key Takeaways
- • now:pensions became a co-investor in Better Society Capital and Mercer's social and affordable housing investment vehicle last year, per a Q&A published by Gemma Bourne on LinkedIn and pensions-expert.com.
- • The UK defined contribution scheme has committed to allocate at least 10% of assets to private markets in its default fund, with at least 5% invested in the UK, according to publisher context.
- • The scheme's initial 5% private markets target was expected to be reached by the end of 2026, per publisher context.
- • now:pensions made its first private markets investment in 2025, an allocation to UK affordable housing designed to deliver long-term, stable income.
- • Martyn James, now:pensions' investment director, discussed reputational risk, liquidity and impact scrutiny in the interview.
Summary
now:pensions, a UK defined contribution pension scheme, has been expanding into private markets with a particular focus on social and affordable housing. In a Q&A published on pensions-expert.com and promoted by Gemma Bourne, Martyn James, investment director at now:pensions, outlined how the scheme's social and affordable housing investment fits within its private markets strategy. Bourne, who is associated with Better Society Capital, said now:pensions became a co-investor last year.
The interview covered the path into the asset class, beginning with a joint request for proposals with Cardano and moving through allocation decisions and the role of housing within the wider portfolio. Discussion also addressed reputational risk, liquidity management and how the scheme scrutinises social impact.
According to publisher context, now:pensions has signed up to allocate at least 10% of assets in its default fund to private markets, with at least 5% invested in the UK. The scheme reported an initial 5% target allocation, which it expected to reach by the end of 2026. Its first private markets investment, made in 2025, provides exposure to residential properties designated as affordable, which the scheme says will deliver long-term, stable returns.
The article does not disclose the size of the housing commitment. Publisher context also notes a broader trend of pension providers increasing private markets exposure, including a commitment by seventeen providers to invest 10% of DC pension funds in private markets by 2030.
The interview covered the path into the asset class, beginning with a joint request for proposals with Cardano and moving through allocation decisions and the role of housing within the wider portfolio. Discussion also addressed reputational risk, liquidity management and how the scheme scrutinises social impact.
According to publisher context, now:pensions has signed up to allocate at least 10% of assets in its default fund to private markets, with at least 5% invested in the UK. The scheme reported an initial 5% target allocation, which it expected to reach by the end of 2026. Its first private markets investment, made in 2025, provides exposure to residential properties designated as affordable, which the scheme says will deliver long-term, stable returns.
The article does not disclose the size of the housing commitment. Publisher context also notes a broader trend of pension providers increasing private markets exposure, including a commitment by seventeen providers to invest 10% of DC pension funds in private markets by 2030.
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