The company’s defined contribution master trust has backed the new strategy with a £150m seed investment.
The Aviva Investors Venture & Growth Capital LTAF will invest in “early-stage companies and technologies”, the asset manager said in a press release. It set up a dedicated venture capital investment unit in September.
The LTAF is structured as an evergreen fund, Aviva Investors said, meaning there is no fixed lifespan to the fund. It will target a 15% minimum annualised return on a rolling five-year basis.
The fund is designed to give investors – in particular DC pension funds – improved access to early-stage companies through a diversified strategy.
While it will invest globally with a mix of third-party funds and direct assets, Aviva Investors said the strategy will have a UK bias. It will focus on four sectors: financial and insurance technology, healthcare technology, science and technology, and climate and sustainability.
The launch follows Aviva’s support for the Mansion House Compact, announced by the government in July 2023.
Dame Amanda Blanc, group chief executive at Aviva, said: “Aviva is investing more and more in the UK, to support growth and back Britain’s flourishing early-stage companies.
“This new fund will provide vital finance to some of the UK’s most promising, high-growth businesses, aiming to deliver great returns for our customers.”
Aviva’s DC pension scheme has committed £150m to the new fund consisting of existing assets and cash.
Aviva Investors’ chief executive Mark Versey said his company was aiming to become “the go-to provider” for DC providers and wealth management firms.
He added: “Targeting venture returns, we expect our new fund to help the companies of tomorrow get ready for the future, driving innovation and growth through investments that also have the potential to have a positive societal and environmental impact.”
The LTAF is the fourth such fund launched by Aviva Investors over the past year. Combined, these funds have more than £3bn invested across real estate, private debt and climate transition strategies.
Last year saw several asset management groups launch LTAFs to open up access to private markets for DC schemes. Legal & General launched a private markets strategy in the summer, while WTW established a private equity strategy seeded by its DC master trust LifeSight in April.
HSBC’s DC scheme invested in an LTAF run by Fulcrum Asset Management, which the asset manager later opened to other investors.
