Smart Pension has announced plans to invest up to 15 per cent of its flagship fund into private markets, as it looks to support the UK government's efforts to encourage investment into national infrastructure and private companies.

The investment in the UK economy is expected to deliver long-term returns for over 1.5 million members, with this contribution set to represent up to £4bn of Smart Pension’s projected assets under management by 2030.

This pledge, which will be fully implemented within 12-18 months, will see Smart Pension build on its previously established 5 per cent commitment to private credit, with an additional 5 per cent invested in private equity and venture capital, and a further 5 per cent invested in renewable energy.

This also builds on the recent Mansion House Accord, which saw seventeen pension providers, including Smart Pension, agree to invest at least 10 per cent of their defined contribution (DC) default funds in private markets.

Commenting on the news,Smart Pension CEO, Jamie Fiveash, said: “As one of the largest and fastest growing workplace pension providers in the UK, as well as a UK fintech growth story, we are proud to commit significant capital to support large-scale projects with innovative British businesses that will drive sustainable growth for the country.

"Private markets can provide opportunities for greater and more sustainable returns for savers because they include long-term projects that have previously been inaccessible to our sector.

"We are happy to be one of the UK master trusts leading the way in this space and leave a legacy not only for our members, but also for the country’s critical infrastructure and businesses.”

The investment managers selected for the new strategies have built bespoke investment solutions for Smart Pension, which were designed without the need for high levels of liquidity, nor the need for a Long-Term Asset Fund (LTAF) structure.

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