UK pension and financial services firm Legal & General has launched a new fund that’s aiming to invest £400m in British businesses by the end of 2025.
The group is targeting £1bn worth of investments made by the end of next year for its Private Markets Access Fund, with up to 40% allocated for UK firms.
Legal & General said the fund would “unlock private market access” for more than five million members of defined-contribution schemes.
Both Labour and the Conservatives have called for more pension cash to be directed into high-growth UK businesses ahead of Thursday’s general election.
Chancellor Jeremy Hunt last year outlined the government’s Mansion House reforms that saw major pension providers agree to assign 5% of their default funds to unlisted companies by 2030.
Labour is also broadly in support of reinvesting UK pension funds into businesses, stating it would introduce an opt-in scheme for defined contribution pensions to invest their capital.
“Today’s launch is an important step forward in putting UK pension capital to work to drive economic growth while supporting people to build the savings they need for retirement,” said Legal & General CEO António Simões.
“Building on our refreshed strategy set out in June, this fund will offer defined contribution scheme savers access to high growth investment opportunities, provide innovative funding for communities, society and the real economy, and power L&G’s private markets growth ambitions.”
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