The Lord Mayor of London, Alastair King, has called on British pension funds to join forces on major investment projects to pool capital, attract foreign investors, and accelerate UK growth.
Despite managing trillions in assets, UK pension funds allocate far less to private markets—such as infrastructure, private equity, and venture funding—than peers in Canada and Australia. Changing this dynamic is central to Finance Minister Rachel Reeves’ plan to fund the next phase of Britain’s economic recovery.
🏗️ “Sterling 20” Initiative
According to reports, the City of London Corporation and the government are preparing to announce “Sterling 20”, a coalition of 20 major pension funds that will collaborate on large-scale domestic projects.
This builds on the Mansion House Accord (May 2025), in which 17 firms pledged to direct 10% of their defined-contribution assets into unlisted investments—half of that within the UK—by 2030.
💬 King emphasized that too many global investors hesitate to enter Britain due to a “lack of domestic lead investors.”
“There needs to be continued pressure on funds,” he said, adding that real progress will come from more collaboration and more shovel-ready opportunities.
📊 The Numbers Speak Clearly
- Only £1 in every £14,000 of UK pension assets goes to venture capital, compared with $1 in every $200 in the United States.
- The government is also reviewing tax-incentivised savings rules to encourage UK shareholding over cash holdings.
🔄 King’s one-year term ends next month. He will be succeeded by Susan Langley, the first Lady Mayor in the City of London Corporation’s history — marking a new chapter for UK finance leadership.