The UK tech industry has reacted positively to an agreement by nine domestic pension providers to assign 5% of their default funds to “unlisted equities” by 2030 under plans outlined in the chancellor’s Mansion House reforms.
The hotly anticipated move will unleash as much as £50bn from defined contribution pensions and £25bn from local government pensions for high-growth companies, according to Chancellor Jeremy Hunt.
It is intended to increase the historically slow flow of capital from UK pension funds into earlier-stage startups.
“If up to £50bn is unlocked by 2030 as the government promises, our homegrown founders will get the fuel they need to build world-beating companies,” said Robin AI CEO Richard Robinson.
“As the US has shown when pension funds flow into the venture capital industry, it creates a virtuous circle of innovation.”...