Millions of employees saving in workplace pension schemes are set to have their money put into illiquid, unlisted assets for the first time with the announcement by Legal & General of a new fund capable of handling billions of pounds.
L&G, which operates workplace pension schemes for employers including Tesco and NatWest, said its new fund would feed savers’ cash into private equity, private debt and infrastructure — asset classes largely denied to pension savers.
It said the fund would “unlock private market access” for 5.2 million members of modern defined-contribution schemes and would help to meet its Mansion House Compact pledge to put up to 5 per cent of assets in private equity.
The new fund will have a substantial bias towards the UK,
