The UK pension landscape is gradually embracing private markets, a trend underpinned by policy, regulation and infrastructure. Yet the rate of adoption hinges on fee structures and closing the growth capital gap, senior executives at Schroders explained. In a media briefing on Thursday, Richard Fox, head of public policy at Schroders, highlighted that conversations with pension trustees have evolved from "not interested" three years ago to "curious and sceptical" a year ago, and now to "beginning to think about allocations".

This shift mirrors the broader narrative captured by the Mansion House Accord, where industry leaders from Future Growth Capital and other firms are mapping out a path for defined‑contribution schemes to enter private markets. While progress has been steady, executives warn that fee mechanics—particularly the balance between fixed and variable costs—will determine how quickly schemes can deploy capital. Moreover, the existing growth capital gap must be bridged to provide sufficient liquidity for pension funds.

Adoption will also depend on regulatory clarity and the development of secondary market infrastructure, which will allow trustees to exit and reallocate assets more flexibly. Industry analysts predict that by 2028, a significant portion of UK pension funds could have allocations in private assets, provided the necessary capital markets infrastructure is in place. Stakeholders are also exploring innovative fee models, such as performance‑based structures, to align interests between trustees and asset managers. The conversation underscores a cautious optimism: the UK’s defined‑contribution space is on a slow but fixed trajectory toward private market participation.