A subsidiary of Universities Superannuation Scheme Limited (USS) has entered a long-term strategic partnership with Venn Partners, acquiring a majority stake in the private credit strategies investment manager.

The transaction is subject to regulatory approvals and is expected to complete in the second quarter of 2026.

USS is the sole corporate trustee of the Universities Superannuation Scheme, and will act as a long-term, patient capital provider to Venn upon completion of the acquisition.

The investment aims to improve Venn’s capacity to deploy capital across the UK housing market.

Venn said the partnership will reinforce its commitment to deliver financing solutions that support the development of sustainable homes, while unlocking effective demand for homeownership and contributing to the long-term resilience of the housing market.

The investment manager, which specialises in private credit strategies within the UK residential sector, currently manages more than £10bn across four strategies in the UK.

Two of its UK strategies support the development of new homes in the affordable housing and private rental sectors, and two seek to unlock access to homeownership for households who are ‘under-served’ by ‘traditional’ mortgage products.

The transaction will see Venn’s management team increase its ownership stake in the business, while ESR will fully exit from the firm after six years of partnership.

“Over the last 15 years, Venn has carefully put in place the foundations for a business that is able to channel institutional capital at scale into the residential sector,” said Venn managing partner, Gary McKenzie-Smith.

“This includes diligent strategy selection and origination protocols, robust parameters in underwriting and risk management and a well-constructed and scalable operating infrastructure.

“This is all underpinned by our proprietary risk management system, as well as a dedicated team of professionals with shared values and a culture of responsibility.

“With these foundations and a strong track record in place, we are excited by the growth opportunity that lies ahead and are delighted that USS has agreed to join us on this journey.”

USS Investment Management Limited head of private credit, Eamon Ray, added: “This new partnership reflects USS’s support for the UK residential market, a sector that can deliver high quality, long duration, inflation linked exposure, while also providing valuable housing options across the UK.

“Venn’s approach aligns with USS’s philosophy of deploying capital responsibly and at scale into sectors of strategic importance, and we have been impressed by its capabilities to deliver long term financing solutions for major patient capital investors and on behalf of the UK government.”

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