The Pensions Regulator has published research finding that pension schemes want to invest in private markets, including UK infrastructure, where investments support member interests, investment objectives and fiduciary duties. However, capability and knowledge gaps, opaque fees, limited transparency, restrictive market structures, policy and regulatory uncertainty, and a shortage of suitable opportunities are constraining investment. Larger schemes with stronger governance and access to specialist expertise are generally better positioned to enter private markets. Most large defined contribution schemes and master trusts have invested or intend to invest, while vehicles such as long-term asset funds are opening access for some schemes. The regulator is encouraging trustees to assess their scale, expertise and governance against member outcomes, strategy and risk profile, and will use supervisory engagement to challenge their investment strategies and capabilities.
2026-09-21The Pensions Regulator
UK Pensions Regulator identifies barriers to private market investment and plans greater scrutiny of trustees
The Pensions Regulator found strong pension scheme interest in private markets but identified barriers including capability gaps, opaque fees and limited suitable opportunities. It will challenge trustees through supervision to assess whether their investment strategies, scale and governance support such investments in members’ interests.