Speaking at the BVCA (British Private Equity and Venture Capital Association) Pension Summit, Policy Chairman at the Corporation, Chris Hayward said:
“At the City Corporation, we were one of the first organisations to identify that the key to unlock economic growth is pension capital. Pension capital can be more-effectively deployed to raise investment levels across the country, benefitting everyone from savers and investors to young start-up businesses.
“In July last year, the City Corporation brought major firms from the sector together and created the Mansion House Compact. Initially, nine of our largest DC pension schemes, representing two-thirds of the DC market, signed a voluntary industry-led agreement to allocate at least 5% of DC default funds to unlisted equities by 2030.
“Our goal is to unlock £50 billion of capital. I’m proud to say that today, we have 11 signatories to the Mansion House Compact. Firms are committed to this vision, actively bringing new products to market and creating new investment arms.
“Just last month, we published an update in collaboration with the Association of British Insurers (ABI) on the one-year anniversary of the Mansion House Compact. I’m pleased to report that 10 out of 11 firms have expanded or reallocated staff to support unlisted equity investments. And 8 out of 11 firms are developing new funds or vehicles, including Long-Term Asset Funds (LTAFs), to increase investment in private markets, early-stage companies, and private equity.
“Through the City Corporation, through our Mansion House Compact, through our partners in industry, we are building change. As we look to the future, it is vital that the entire value chain, from the BVCA to the ABI, the City Corporation, and the entire sector – maintains the momentum of the Mansion House Compact.
“From my discussions with Rachel Reeves and the actions of the new Government, it is clear that there is a strong willingness to support the financial services sector and pensions in driving growth.
“Moving forward, we must ensure that the Government delivers pension reforms at speed and provides transparency on their long-term investment strategy and policy priorities.”
The full speech can be accessed here.
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