The People’s Pension Expands into Private Market Investments
The People’s Pension has announced plans to enter the realm of private market investments in the coming months, promising significant growth for its assets.
As one of the largest independent master trusts in the UK, The People’s Pension currently serves over 6.8 million pension savers and manages an impressive £31 billion in assets. This bold move is set to position the trust to allocate a substantial portion of its funds into private markets by the end of this year, with a goal of reaching £4 billion by 2030. The initial focus will be on investments in critical sectors like infrastructure and real estate.
This ambitious figure is projected based on anticipated growth in total assets under management in the years to come. The People’s Pension has indicated that a considerable share of this new allocation could be directed towards UK assets, contingent upon their ability to yield returns that meet rigorous requirements.
The trust emphasized that any investment will depend on having access to a "dependable pipeline" of quality assets at competitive fee levels, ensuring that the benefits remain with the members. This strategic move follows last year’s assertion that the scheme has achieved the scale necessary for meaningful investments in private markets.
Chancellor Rachel Reeves expressed support for this initiative, stating, "Growing the economy is the number one mission of the Government. This public commitment from one of the UK’s largest independent pension master trusts to invest here, at home in Britain, will help drive economic growth and support our milestone of improving living standards across the UK."
Mark Condron, chair of the People’s Pension board of trustees, described the announcement as a crucial advancement toward investing in private markets, particularly those that are integral to the UK economy. He highlighted the significant potential for a responsible asset owner, operating at the right scale, to align investments with the best interests of its members while also benefiting the broader economy.
Patrick Heath-Lay, CEO of People’s Partnership—home to The People’s Pension—asserted, "We’re at a pivotal time for UK pensions, with the Government indicating a direction of travel toward scale and value for savers. As an independent £31 billion master trust, we believe that now is the time to increase our investment in private assets for the benefit of our savers and the growth of the UK economy. The People’s Pension has a vital role to play in this exciting plan for the future of UK retirement savings."
Dan Mikulskis, chief investment officer of People’s Partnership, underscored the importance of collaboration with the investment community, stating, "For us to invest in private markets during this period, it’s critical that the wider investment community, with the support of the Government, provides a dependable pipeline of investable opportunities that deliver good value for our 6.8 million savers."
Through this initiative, The People’s Pension aims to empower pension savers while playing a significant role in enhancing the UK’s economic landscape.
