The UK government has unveiled the Sterling 20, a new alliance of the country’s largest pension funds and insurers, aimed at mobilising billions in long-term investment for regional housing, infrastructure, and high-growth industries such as AI and fintech.

Announced by Chancellor Rachel Reeves at the first Regional Investment Summit in Birmingham, the initiative brings together 20 major institutions, including Legal & General, Aviva, M&G, Phoenix Group, Rothesay, Nest, and the Universities Superannuation Scheme. The group will work alongside the Treasury and the City of London Corporation to channel domestic savings into projects that stimulate jobs and regional development.

Legal & General has pledged £2bn by 2030 to deliver around 10,000 affordable homes and 24,000 jobs nationwide. Nest, which manages pensions for a third of the UK workforce, will invest £500m through Schroders Capital, with £100m allocated to UK private markets. It will also direct £40m toward expanding gigabit broadband to rural communities in Scotland and northern England.

AustralianSuper, the largest pension fund in Australia, will also expand its UK footprint with a £500m platform dedicated to rental housing, as part of a broader £8bn investment plan that will raise its UK exposure to £12bn by 2030.

“Sterling 20 shows what can be achieved when we all pull in the same direction,” said Chancellor Rachel Reeves. “This is about getting Britain building again — delivering the homes, infrastructure, and industries that create good jobs in every corner of the country.”

Legal & General CEO António Simões said the firm’s £2bn commitment would “help unlock the investment needed in productive assets across the country,” while Nest CEO Ian Cornelius noted the initiative’s dual benefit for pension savers and communities.

The creation of the Sterling 20 builds on the Mansion House Accord, launched in July, which saw 17 pension providers, representing 90% of active defined contribution savers, commit to investing at least 5% of their default funds in UK private markets. The measure is expected to unlock more than £25bn in capital for UK housing, infrastructure, and innovation by 2030.

The move highlights the growing role of institutional capital in financing national development priorities, as the UK seeks to attract both domestic and international investors to drive long-term economic growth.

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.

Can`t stop reading? Read more.