Seventeen workplace pension providers that signed the Mansion House Accord held £22.1 billion of defined contribution (DC) growth-phase assets in global private markets at 31 December 2025, according to the first progress update from the Association of British Insurers (ABI) and Pensions UK. Of that, £11.1 billion was in UK private markets.
The figures equate to 6.6% of the £334 billion of growth-phase DC default assets covered by the Accord, with 3.3% in the UK, according to the ABI and Pensions UK. The update was produced with the signatories and the City of London Corporation and is dated 21 October 2026.
What the Accord set out to do
The Accord is a voluntary, industry-led commitment coordinated by the ABI, Pensions UK and the City of London Corporation. When it was announced on 13 May 2025, the government described it as “a voluntary expression of intent by seventeen signatories”.
The 17 signatories are working towards holding 10% of DC default funds in private markets, including 5% in UK private markets, by 2030. The ABI and Pensions UK say this is subject to their fiduciary and regulatory duties. The signatories are Aegon UK, Aon, Aviva, Cushon, Legal & General, LifeSight, M&G, Marsh, Nest, now:pensions, Royal London, Smart Pension, Standard Life, the People’s Pension, SEI, TPT Retirement Solutions and the Universities Superannuation Scheme (USS).
Where the money is
The report’s breakdown of UK holdings shows property and real estate, including social and affordable housing, accounting for £8 billion of the £11.1 billion. The other UK figures are:
– infrastructure: £1.3 billion – private debt and credit: £0.9 billion – private equity: £0.5 billion
Investment trusts, which the report says hold private-market assets and were outside the original scope of the Accord, account for a further £0.4 billion in the UK. Without investment trust assets, the report puts the total at £19.3 billion, with £10.7 billion in UK private markets.
Signatories have also contractually committed a further £10.7 billion to private markets within growth-phase DC defaults that is awaiting deployment, of which £3 billion is allocated to UK private markets. These sums are not included in the £11.1 billion total because they had not been deployed by 31 December 2025.
Across their wider DC asset base, which includes assets in glidepath, drawdown and personal pensions, signatories held £56.9 billion in private markets, with £32.1 billion of that in UK assets, according to the report.
The older Compact
The report also updates the 2023 Mansion House Compact, a separate commitment to hold at least 5% of DC default funds in unlisted equities by 2030. The ABI and Pensions UK say it is not directly comparable with the Accord because its scope and definitions differ. In the ten months to 31 December 2025, they say, Compact signatories increased unlisted-equity investment in DC default funds by 65%, from £1.6 billion to £2.7 billion, taking the allocation from 0.6% to 0.85%.
Pipeline concerns
The update says the outlook depends on the supply of investable opportunities. Only six signatories saw a largely or fully sufficient UK pipeline, while 11 were uncertain about its depth, according to the report. Signatories also called for an aligned treatment of performance fees, an effective value-for-money framework, a sensible scale policy, clearer permitted-links rules, fee transparency and regulatory stability.
Industry reaction
Dr Yvonne Braun OBE, Director of Long-Term Savings and Health & Protection Policy at the ABI, said: “Firms’ strong progress towards their Mansion House commitments is a welcome and important milestone. It shows the industry is delivering on its goal to increase investment in private markets that support better outcomes for pension savers while helping to finance the homes, infrastructure and businesses the UK needs.
“However, there can be no room for complacency. Sustaining this momentum will depend on a strong pipeline of investable opportunities and a shift across the workplace pension market away from a narrow focus on cost and towards long-term value for savers.”
Zoe Alexander, Chief Policy Officer at Pensions UK, said: “Mansion House signatories are committed to deploying more capital in the UK, and that commitment shows in this latest set of figures. They see that if investment opportunities are right for savers and can support vital UK growth at the same time, it’s a win-win.
“With billions already invested and deals worth a further £3 billion already signed and awaiting deployment, the industry is poised to do more. Changes facilitated by the Government’s new value for money framework and greater co-ordination between Whitehall and public finance institutions should help create the conditions to further accelerate private market investment in future.”
Dame Susan Langley DBE, The Right Honourable the Lady Mayor of London, said: “It’s really encouraging to see a clear focus on unlocking the investment that the UK needs to drive growth. That means backing innovation and scale-ups, as well as investing in the infrastructure and energy projects that underpin our economy.
“But no single organisation is responsible for retirement outcomes. Employers, trustees, advisers and providers all have a part to play in ensuring what will deliver the best retirement outcomes. It’s important that we continue to build a pipeline of credible UK investment opportunities, to turn ambition into action.”
Nest and Marsh respond
Ian Cornelius, CEO of Nest Corporation, said: “The Mansion House reforms are designed to encourage pension schemes to invest more in private markets and productive assets. At Nest, we’re already putting this approach into practice at considerable scale on behalf of our 14 million members.
“Our focus remains simple: delivering the best possible retirement outcomes for members. We have the scale and long-term investment horizon to access opportunities across private markets, from innovative businesses to infrastructure, where we believe they can deliver value for members. A strong UK economy and stronger pensions can go hand in hand when investment decisions are driven by members’ interests.”
Marsh said its DC Solutions business has made an initial commitment of £500m to a customised Long-Term Asset Fund (LTAF). Phil Parkinson, President and CEO of Marsh People and Investment UK, said: “We are starting to see real momentum around the Mansion House Accord. Our DC Solutions’ business has made an initial commitment of £500m to a customised Long-Term Asset Fund (LTAF), which invests in private markets and represents a meaningful step forward in supporting DC members with better and more resilient outcomes. This is aimed at our DC pension savers, so is focused on high-growth private markets, with a significant allocation to private equity and infrastructure. We believe private markets can help improve long-term outcomes for DC members and across the industry we are already seeing capital flow into exciting new sectors, including attractive opportunities in the UK”.
