What Investing in private markets means

A strategic step to enhance returns for savers

The People’s Pension is beginning a significant journey into private markets. Starting in 2025, we plan to allocate up to allocate up to 10 per cent of growth pool assets–or £4 billion–­by 2030..

These investments, focusing on infrastructure and real estate, are expected to enhance long-term returns for savers. There may also be secondary benefits to the UK economy, but the primary goal remains securing the best outcomes for our members.

While these investments may have some secondary benefits for the UK economy, our primary focus remains on securing the best possible outcomes for your financial future.

Q: Why is The People’s Pension investing in private markets?

With £32bn in assets under management, The People’s Pension has reached the scale required to invest in private markets responsibly.

This step allows us to access a broader range of high-quality assets, ensuring these investments deliver dependable returns for our members.

Q: What does this mean for employers?

Employers can trust in a pension scheme designed to prioritise long-term growth for their employees’ savings.

While private market investments may contribute to economic resilience, their primary aim is to deliver strong, stable returns for members, which can help boost employee satisfaction and engagement.

Q: How does this benefit advisers and their clients?

For advisers, this development strengthens The People’s Pension as a recommendation. The move into private markets demonstrates our focus on sustainable, member-first investing.

By aligning with us, advisers can reinforce their role as trusted experts delivering valuable solutions for clients.

Q: How much will The People’s Pension invest in the UK economy?

The extent of UK-focused investments depends on whether the assets available meet our return requirements and offer good value for members.

Currently, 14% of members’ savings are invested in UK-based assets, and this proportion may grow as private market opportunities expand.

Q: What types of projects will The People’s Pension invest in?

Initially, we plan to target infrastructure and real estate. However, the decision to invest will always depend on the quality of the assets and their potential to deliver returns that align with our members’ best interests.

Q: Will these investments increase risks?

Private market investments will be carefully integrated into a diversified portfolio, designed to balance risk and reward. This ensures that risks are managed while enhancing the potential for long-term growth.

Find out more about our investments approach.

Q: How will employers and advisers be kept informed?

We’re committed to transparency. Regular updates on the performance of private market investments will be shared through briefings, newsletters, and dedicated resources.

This ensures employers and advisers can communicate confidently about the value of these investments.

The People’s Pension’s move into private markets reflects our commitment to growing members’ savings responsibly. While there may be an added benefit to the UK economy, the primary focus is ensuring long-term returns for savers.

This step represents an opportunity for employers and advisers to align with a forward-thinking pension scheme that demonstrates leadership, sustainability, and value-driven investing.


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