Key Takeaways
- • UK pension providers in the Mansion House Accord held £11.1bn in domestic private market investments at end-2025, equal to 3.3% of their defined contribution growth-phase assets, according to figures released by the Association of British Insurers (ABI) and Pensions UK.
- • The 17 signatories held a further £11bn in overseas private markets, bringing total global private market holdings to £22.1bn, or 6.6% of relevant pension assets.
- • Property and real estate made up the largest domestic allocation at £8bn, followed by infrastructure at £1.3bn, private debt and credit at £900m, and private equity at £500m.
- • Signatories reportedly agreed an additional £3bn of investment in UK private markets, signaling growing institutional appetite for domestic opportunities.
- • The ABI and Pensions UK said further progress depends on a stronger pipeline of investable UK assets and on addressing regulatory barriers and an excessive focus on investment costs.
Summary
UK pension providers participating in the Mansion House Accord held £11.1bn in domestic private market investments at the end of 2025, representing 3.3% of their defined contribution (DC) growth-phase assets, according to figures released by the Association of British Insurers (ABI) and Pensions UK. Including £11bn held in overseas private markets, the 17 signatories' total global private market holdings reached £22.1bn, equivalent to 6.6% of relevant pension assets.
By asset class, UK property and real estate was the largest domestic allocation at £8bn, followed by infrastructure at £1.3bn, private debt and credit at £900m, and private equity at £500m. Signatories have also reportedly agreed an additional £3bn of investments in UK private markets, reflecting growing institutional demand for domestic opportunities.
The Mansion House Accord, launched in 2025, sets a voluntary target for participating providers to allocate 10% of DC assets to private markets by 2030, including 5% to UK investments. Progress under the earlier Mansion House Compact has also continued, with reported investment in unlisted equities across participating default funds rising 65% over the ten months to December 2025, from £1.6bn to £2.7bn. The allocation increased from 0.6% to 0.85%.
The ABI and Pensions UK said further progress will depend on developing a stronger pipeline of investable UK assets, particularly as pension schemes consolidate and seek to deploy larger pools of capital. Signatories also reportedly identified regulatory barriers and an excessive focus on investment costs as obstacles to higher allocations, and called for greater emphasis on long-term returns and value for pension savers.
By asset class, UK property and real estate was the largest domestic allocation at £8bn, followed by infrastructure at £1.3bn, private debt and credit at £900m, and private equity at £500m. Signatories have also reportedly agreed an additional £3bn of investments in UK private markets, reflecting growing institutional demand for domestic opportunities.
The Mansion House Accord, launched in 2025, sets a voluntary target for participating providers to allocate 10% of DC assets to private markets by 2030, including 5% to UK investments. Progress under the earlier Mansion House Compact has also continued, with reported investment in unlisted equities across participating default funds rising 65% over the ten months to December 2025, from £1.6bn to £2.7bn. The allocation increased from 0.6% to 0.85%.
The ABI and Pensions UK said further progress will depend on developing a stronger pipeline of investable UK assets, particularly as pension schemes consolidate and seek to deploy larger pools of capital. Signatories also reportedly identified regulatory barriers and an excessive focus on investment costs as obstacles to higher allocations, and called for greater emphasis on long-term returns and value for pension savers.
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