It’s time to back the next generation of savers and business success stories

On 13 February, leaders from the pensions and private capital industries held the first meeting of the Pensions & Private Capital Expert Panel. This group will spend the coming months working out how to back the next generation of British business success stories, and boost retirement incomes for people on Defined Contribution (DC) pensions.

There is a shared determination across government, the pensions industry and the world of private capital to unlock investment by UK pension funds in VC and Growth equity firms. The impact of doing so could be transformative for savers and the businesses that are ultimately invested in. Overseas pensions funds that invest in private capital enjoy impressive returns. Research from think tank Onward, found that if UK savers matched the returns of US, Canadian or Australian equivalents it would mean almost £100,000 of additional retirement income. For UK businesses, it would mean access to funding they need to grow.

In her interview with Forbes, Expert Panel Chair Kerry Baldwin described what can happen if high potential businesses don’t get the funds they need — from compromises on hiring to reigning in ambition to expand internationally.

This work is progressing quickly. Next week, the Expert Panel will publish a report produced by PwC which outlines the barriers the private capital industry is seeking to overcome, and in early March, a group of technical experts will meet to begin developing solutions. The Expert Panel is expected to report its findings in Autumn 2024, before final recommendations are provided to the government, the pensions and private capital industries in the Spring.

For more information, contact the BVCA Policy team.

Authored by Chris Elphick
Senior VC Policy Manager, BVCA

Originally published on the BVCA website on 23 February 2024.