UK Pension funds eyeing in-house venture capital investing

Praveen Paranjothi · 2024-09-05T06:23:28.000Z

UK pension fund managers, following the Mansion House Compact, are set to invest billions in high-growth companies. While venture capital (VC) firms initially hoped to benefit from this move, their role may be smaller than expected. Although 70 firms signed a follow-up Venture Capital Investment compact, major pension managers like L&G, Phoenix, and Aviva are now launching their own private market platforms to handle investments directly. This shift could marginalize traditional VCs, with experts warning that pension funds attempting direct investments might face challenges without specialized expertise. However, the creation of these platforms might also position pension firms as limited partners in established VC funds. The British Venture Capital Association remains optimistic, seeing innovation in these new strategies, though VCs remain cautious about the potential impact on their share of pension fund investments. https://www.cityam.com/could-venture-capital-firms-miss-out-on-the-great-pension-fund-start-up-splurge/

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UK Pension funds eyeing in-house venture capital investing | Newnex