The Cushon Master Trust and Aegon are working with the British Business Bank with a view to investing in the new British Growth Partnership.
Chancellor Rachel Reeves announced last night (14 November) in her Mansion House speech that the two companies were working with the development bank to explore ways to drive investment from pension funds and providers into UK start-up businesses.
The master trust’s parent company NatWest Cushon has also committed to working with the British Business Bank on other potential products.
NatWest Cushon said the work was part of a wider effort to increase its allocations to UK private markets. It is also in dialogue with Future Planet Capital with a view to investing in its British Co-Investment Fund.
In a statement, the master trust said: “Not only can unlisted UK assets generate investment returns for members, but they can improve member engagement too. For example, it’s easier to create emotional connections between members and UK success stories.”
The commitment is subject to commercial terms and the agreement of the master trust’s trustees.
Ben Pollard, CEO of NatWest Cushon, said: “As a signatory to the Mansion House Compact, we see the UK growth agenda as a win-win. By investing in impact focused sectors and UK high growth companies, we’re helping secure better outcomes for pension savers and a better future for them and broader society.
“Initiatives like the British Growth Partnership are critical to giving pension schemes access to these investment opportunities.”
Aegon plans to invest into the British Growth Partnership in its Universal Balanced Collection fund, its default workplace pension offering, subject to due diligence and commercial discussions.
Aegon is currently in the process of overhauling its default fund with a view to improving outcomes for members through a wider range of investment opportunities, better potential investment returns, and overall value for money.
It has also allocated to a long-term asset fund for its private markets exposure, with assets managed by BlackRock and JP Morgan Asset Management.
Lorna Blyth, managing director of investment solutions at Aegon UK, said: “By partnering with the British Business Bank, we can unlock investment into businesses with high growth potential through the British Growth Partnership, and capture the full commercial potential of world-class breakthrough technology companies.”
Louis Taylor, CEO at the British Business Bank, said: “This announcement is an endorsement of the work the British Business Bank is doing to support pension funds and other institutional investors to access venture capital opportunities.”
He added that the work with NatWest Cushon and Aegon showed that “our objectives and vision for investing in growth are highly aligned”.
The British Business Bank announced last week that it had appointed Leandros Kalisperas, currently chief investment officer at the West Yorkshire Pension Fund, as its new CIO with effect from January 2025.
Taylor is set to speak at Pensions Expert’s UK Investment Summit on 16 January in London, which will explore in detail the opportunities and considerations for investing in UK growth assets. For more details, visit the dedicated event website.
Further reading
West Yorkshire CIO to lead British Business Bank (8 November 2024)
Is bigger really better? Industry reacts to ‘megafunds’ plan (14 November 2024)
Incentives needed to invest in productive finance, say master trusts (21 October 2024)
