Prime Highlights
- Mercer plans to invest £350 million into a new Schroders long-term asset fund to increase access to private market investments for pension members.
- The move aims to boost long-term returns and improve retirement outcomes through greater diversification.
Key Facts
- The Schroders Mercer Private Assets Growth LTAF is expected to launch in early 2026, subject to regulatory approval.
- The fund will focus mainly on private equity and infrastructure, with some listed investments held for liquidity.
Background:
Mercer has announced a major investment plan to enhance members’ access to private market assets. The UK workplace savings solutions provider, including its master trusts, will commit an initial £350 million to the newly-launched Schroders Mercer Private Assets Growth Long-Term Asset Fund (LTAF) in its first year, with further commitments expected to follow.
The fund, which is anticipated to launch in the first quarter of 2026 pending Financial Conduct Authority approval, will be managed under the Schroders Capital Long-Term Asset Funds umbrella, with Future Growth Capital acting as delegated investment manager. Mercer representatives will also join a joint investor advisory committee to provide ongoing governance.
The LTAF will invest through Mercer, Schroders Capital, and chosen external managers, becoming the main fund for private market investments in Mercer UK’s Workplace Savings plans, including the Mercer Master Trust and Now Pensions Master Trust.
The LTAF will mainly invest in private equity and infrastructure, while keeping some listed stocks to ensure liquidity. A significant share of investments will target UK-based growth opportunities.
Phil Parkinson, Mercer UK wealth practice leader, said: “Private markets have moved from the margins to the mainstream, adding diversification and innovation. The LTAF will provide access to growth-focused private equity and infrastructure equity, helping to enhance long-term returns and improve retirement outcomes for members.”