Allocations to private markets are a core component for 30 per cent of defined contribution (DC) scheme portfolios, according to a survey of delegates at the Pensions UK Investment Conference 2026.

The poll of delegates during a panel session at the conference on the future of DC also revealed that 35 per cent are assessing the cost-benefit of private markets.

A further 23 per cent said they have a small allocation to private markets, while 13 per cent do not allocate to the asset class as they do not believe it materially improves member outcomes.

Attendees were also asked what matters most to them when selecting a DC private markets manager. A majority of 52 per cent answered strong governance, transparency and a high conviction they will deliver better outcomes for members.

Twenty-five per cent said it was the ability to manage liquidity and cashflows, while 12 per cent said investment fees and costs, and 10 per cent selected robust operational infrastructure and member-friendly implementation.

Isio partner and head of investment, Emily McGuire, added that when it comes to commercial master trusts, almost all of them are allocating to private markets.

She added that previously private markets had been part of many master trusts’ premium offering but more master trusts are moving to a single private markets offering within their default investment funds.

In terms of UK opportunities for private market investments, BlackRock director, government affairs and public policy, Muirinn O’Neill, said the UK has a lot of “gold standard” investments, such as airports and the tunnel under the Thames.

These, she said, are “super attractive” with schemes competing to invest from around the world.

She continued: “Where there is a bit of a gap and where you need to think about that pipeline is that mid-range of investment. There hasn’t been a good way to connect some of those slightly smaller investments to institutional investors.”

Compared to the US, which has a single body that institutional investors would deal with, the UK has a “litany of loads of different bodies”, which she said is “complicated”.

“Trying to make that right sizing a bit easier for local government, for example, so that they can make investments, so they can package them properly, that’s something that the government needs to think about,” she added.

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