Two leading UK financial firms, Phoenix Group and Schroders, have partnered to invest as much as £20bn of pension funds into the UK’s fast-growing businesses, particularly in property, green energy and small enterprises. This initiative follows government reforms aimed at boosting returns for savers and stimulating the British economy.

The joint venture, Future Growth Capital, is set to deploy between £10bn and £20bn over the next decade into private markets, with a focus on sectors like green energy, windfarms, solar power, property, and small businesses. This move is a direct response to the “Mansion House compact” introduced by former chancellor Jeremy Hunt, encouraging pension fund managers to invest in high-growth, unlisted assets. These investments, while potentially riskier, offer the opportunity for higher returns.

Future Growth Capital’s strategy aligns with Labour’s goals to increase private investment in the UK economy. The initiative is likely to be mentioned at upcoming property networking events in London, where discussions on enhancing investment in UK businesses could take centre stage. The focus on sectors such as green energy and small enterprises reflects the broader aim to support the UK’s economic growth.

This development also raises questions for those wondering “who are the biggest property investors in the UK?” as the involvement of major firms like Phoenix Group and Schroders underscores the potential for significant investment in the property sector. The initiative is not just about financial returns but also about driving sustainable growth in critical areas of the economy.

Additionally, the fund’s focus on private markets may provide insights for professionals seeking advice on “how to win construction contracts” in emerging sectors like renewable energy. The involvement of major financial institutions in these areas may create new opportunities for businesses looking to secure contracts and partnerships.

Future Growth Capital will launch with an initial £1bn in pension money committed by Phoenix Group, managed in partnership with Schroders. The firm plans to allocate up to £2.5bn over the next three years, investing both in the UK and globally. Phoenix Group intends to invest 5% of its relevant savings products in unlisted assets, offering a diversified portfolio with the potential for higher returns.

Andy Briggs, CEO of Phoenix Group, noted, “Pension savers in the UK have received lower returns compared to other developed economies like Australia and Canada, partly due to a lower allocation to private assets. By forming Future Growth Capital with Schroders, we aim to provide UK long-term savers with a diversified portfolio and potential for higher returns.”

Peter Harrison, CEO of Schroders, added, “By connecting long-term savers with our country’s most inventive companies, Future Growth Capital will help more people fund a secure and comfortable retirement while supporting businesses to grow and thrive in the UK.” To register your place at the UK’s biggest real estate and property festival, visit https://www.ukreiif.com/ukreiif-2025/