UK private equity and venture capital funds are attracting 16 times as much investment from overseas pension funds than from UK pensions.
This was one of the headline figures presented to the Corporate Adviser summit by Kerry Baldwin managing director of IQ Capital, and chair of the Pensions and Private Capital Expert Panel — a government-led panel that designed to facilitate greater DC investments into private markets in the wake of the Mansion House Compact.
Baldwin set out the benefits of investing in private markets, and the opportunity this presents to boost member returns, as well as meeting ESG targets particularly in relation positive environmental and societal impacts, with many of these hi-tech startups investing in climate transition and healthcare solutions.
She pointed out in in 2022 UK managed venture capital and growth funds received approximately £432 million from international pension funds. In contrast these funds received just £48m from UK pension funds. “Let’s face it this is not a lot,” she said.
As a result DC schemes are potentially…
