Seventeen of the UK’s largest pension providers have committed to allocate up to £50bn to private markets and infrastructure by 2030, as part of the newly announced Mansion House Accord.

The agreement, signed at a Treasury roundtable in London, aims to boost economic growth and enhance pension returns by increasing exposure to private equity, infrastructure, and real assets.

Under the terms of the accord, each signatory will target a 10% allocation of their defined contribution (DC) portfolios to private markets, with a minimum 5% committed to UK-based investments. The initiative, backed by pension schemes representing over 90% of workplace DC savers, is expected to release £25bn into the domestic economy over the next six years.

The signatories include major institutions such as Aviva, Aegon, Legal & General, and Nest, the government-backed workplace pension scheme.

Nest’s Chief Investment Officer, Liz Fernando, who signed the Mansion House Accord on behalf of Nest, said:

“As a scheme committed to investing at scale in private markets, as well as in the UK, we are pleased to join colleagues from across the industry in this significant initiative.

“We currently have around 15% of our assets under management in private markets, and an ambition to increase this to 30% in the coming years. Around 60% of this private market allocation already is in the UK. Our members are UK workers, and we want to invest in their communities and the infrastructure they use, to help drive the UK economy.

“We are confident our approach will help drive substantial positive impact for our members and the UK, and we continue to foster partnerships that help us tap into the great investment opportunities on our doorstep.”

The accord builds on the 2023 Mansion House Compact and will be supported by the forthcoming final report from the UK Pensions Investment Review, which is expected to recommend further reforms to address fragmentation in the pension system and improve access to private market vehicles.

The Treasury also confirmed that the British Business Bank has received FCA approval to launch the British Growth Partnership, a new initiative that will provide DC pension schemes and institutional investors with access to UK-focused venture capital funds.

Chancellor Rachel Reeves described the initiative as a “bold step” that will unlock capital for clean energy, infrastructure, and high-growth UK businesses while enhancing long-term returns for pension savers.