Mercer’s workplace savings solutions will invest £350m into private markets through a new bespoke LTAF run by Schroders.
This new LTAF will be the primary vehicle for private market investment for both Mercer Master Trust and the Now: Pensions Master Trust. This will support both master trusts’ Mansion House commitments to invest at least 10 per cent of their default into private markets, with half of this in UK growth opportunities.
This LTAF will also hold listed equities to meet liquidity requirements. It says it intends to allocate “a meaningful share of its investments” to UK-based growth opportunities.
This new LTAF will receive this initial £350m investment from Mercer in its first year, with further commitments to follow.
It is anticipated that this new fund, Schroders Mercer Private Assets Growth Long-Term Asset Fund (LTAF), will go live in the first quarter of 2026, subject to regulatory approval from the Financial Conduct Authority.
The LTAF will be launched by Schroders Capital, with Future Growth Capital Limited serving as the delegated investment manager. Representatives from Mercer will also participate in a joint Investor Advisory Committee to provide ongoing governance.
The LTAF will allocate capital to underlying investment mandates provided by Mercer and Schroders Capital, as well as third-party investment managers, where deemed appropriate.
Mercer UK’s Wealth practice leader Phil Parkinson says: “Mercer, combined with the now:pensions Master Trust, collectively manages billions of assets and has global private markets research and implementation capabilities.
“Working together allows both master trusts to have larger allocations to private market asset classes with the potential for higher returns.”
Mercer has $683bn in assets under management as at 30 September 2025.
Parkinson adds: “Private markets have moved from the margins to the mainstream – adding diversification and innovation. The LTAF aims to provide access to growth-focused private equity and infrastructure equity assets, helping to enhance long-term returns and support better retirement outcomes.”
Dame Susan Langley, Lady Mayor of the City of London, added: “Mercer and now:pensions are taking real steps to deliver on the ambition of the Mansion House Accord. A commitment of this size to a long-term vehicle focused on UK growth will help deliver better returns for savers and strengthen our position as one of the world’s most competitive investment markets. It reflects a great confidence in Britain’s future.”
