Fundraising from UK Pensions: A Guide to Raising Capital

As the $4.84tn UK pension industry moves further into defined contribution (DC), schemes are rethinking current allocations and diversifying into alternatives. Our findings include:

• Their current allocations to alternatives outstrip public equities, with real estate and infrastructure attracting the highest target allocations at 10% and 8%. However, the smallest pension plans have fallen deeper into under-allocation 

• Adoption of similar policy to Australia and Canada could see DC schemes in the UK further push into private markets, helped by new fund structures such as LTAF 

• Managers of higher-risk assets are expected to target capital from the younger generations, with recent calls for early pension access for first-time buyers