British pension funds are being urged to join forces on large-scale domestic projects, pooling capital to attract foreign investors and revitalise national infrastructure — a vision championed by Lord Mayor of London Alastair King.
💡 A Strategic Call for Collaboration
Speaking ahead of the launch of the “Sterling 20” initiative, King emphasised that greater cooperation among pension schemes could address the chronic shortage of domestic lead investors deterring global capital.
“Too many overseas investors are put off by the lack of domestic leadership in UK investment,” King said.
🔹 The Context
UK pension funds invest far less in private markets — such as infrastructure, private equity, and venture capital — compared to peers in Canada or Australia.
Finance Minister Rachel Reeves’ reform agenda seeks to reverse this by funnelling more retirement capital into the real economy.
🔹 Building on the Mansion House Accord
The new effort builds on the Mansion House Accord, signed earlier this year by 17 institutions committing to allocate 10% of defined-contribution assets to unlisted investments (half within the UK) by 2030.
Sterling 20 aims to accelerate this shift through collaborative, large-scale pension investment vehicles.
🔹 Challenges & Opportunities
King acknowledged that funds need more “shovel-ready” projects and scalable early-stage investment opportunities to deploy capital effectively — not just pressure to invest differently.
Currently, only £1 in every £14,000 of UK pension assets is invested in venture capital, compared to $1 in every $200 in the U.S.
👩💼 Leadership Transition
As King prepares to hand over to Susan Langley — soon to be the first Lady Mayor in the City of London Corporation’s history — his message to institutional investors remains clear:
➡️ Unlock collective capital. Lead from home. Build the nation’s future.