• PMI Launches Private Markets Industry Guide 2025; urges trustees to upskill as private markets demand deeper expertise
• Private market allocations have nearly tripled across UK pension schemes since 2019

The Pensions Management Institute (PMI) has published its Private Markets Industry Guide 2025/26 to help trustees and pension professionals navigate the growing complexity of private market investments.

As many UK pension schemes continue to explore alternatives to traditional public markets, the guide highlights the increasing importance of private equity, infrastructure, private credit and venture capital in delivering long-term, inflation-protected returns for members.

Data in the guide shows private market allocations have nearly tripled across UK pension schemes since 2019, rising from 9% to 26%, while 16% of private DB assets are allocated to productive finance, including £119 billion in property and other alternatives.

But with this shift comes a demand for deeper expertise, stronger governance, and more sophisticated decision-making. The guide addresses the challenges head on, collating expert opinion from market leaders and practical guidance on how to embrace existing opportunities.

Helen Forrest Hall, Chief Strategy Officer at the PMI, said:

“Private markets have evolved from niche to increasingly mainstream in recent years, and pension schemes can’t afford to sit on the sidelines. Trustees face tough questions on access, governance and member outcomes. The regulator expects evidence-based decisions, not guesswork.

“We know investing in private markets demands a higher level of skill, oversight, and strategic thinking from trustees and their advisers. Our new guide provides essential insight and practical advice into this complex area and is a must read for the industry.

“We continue to work in partnership with the industry to deliver the education, tools, and support trustees need to confidently navigate this evolving landscape and deliver better outcomes for members.”

Asset allocation is shifting

Scott Foster, Head of Digital & Governance Solutions at CACIES, is among those to contribute to the guide. He notes that recent analysis by CACEIS via its Cost Transparency & Benchmarking Universe (encompassing £725 billion in assets under management across Defined Benefit, Defined Contribution and Local Government Pension Schemes), reveals a real shift in asset allocation.

Scott writes: “This is not a marginal adjustment but a fundamental recalibration of pension fund strategy, driven by a confluence of regulatory and policy pressure, the search for yield, and the imperative for long-term, inflation resistant returns."

The guide explores access structures, ESG integration, cost transparency, and the role of scale in unlocking value - offering practical insights for schemes of all sizes. It also addresses the challenges smaller schemes face and outlines collaborative solutions to ensure no scheme is left behind.

Fellow contributor Mithesh Varsani, Head of Investment Solutions at Scottish Widows, writes: “Investing in private markets can play a valuable role in pension fund portfolios but requires a thoughtful approach that balances opportunity with measured risk. Success hinges not only on access but on disciplined execution, strong partnerships and a long-term perspective, remaining agile in adapting to a rapidly evolving investment landscape.”

PMI continues to lead the way in trustee education and professional development, helping pension professionals adapt to a more complex, opportunity-rich investment universe. It will be publishing more essential guides in 2026, including one on pensions dashboards in February.

Ends

Notes to editors:

Summary of each article in the PMI Industry Guide 2025:

Navigating the Complexities of Accessing and Sourcing Private Market Investments

Author: Mithesh Varsani, Head of Investment Solutions, Scottish Widows
Provides a practical guide to the structures and strategies for accessing private markets, including commingled funds, co-investments, and direct investments. Emphasises the need for strong partnerships, due diligence, and long-term thinking.

Beyond Bonds: The Strategic Pivot to Private Markets for UK Pension Funds

Author: Scott Foster, Head of Digital & Governance Solutions, CACEIS UK
Details the shift in asset allocation from public to private markets across DB, DC, and LGPS schemes. Analyses drivers such as inflation, regulatory pressure, and the search for yield, and outlines strategic imperatives for trustees.

Looking Beyond the Balance Sheet

Author: Pretty Sagoo, Managing Director, Just Defined Benefits
Explores how insurers are already investing in UK productive assets such as infrastructure, housing, and transport. Highlights the alignment between pension security and economic growth and how clearer pathways and regulatory support will unlock further investment potential.

UK Venture Capital: Why Now for UK Pensions

Authors: Ryan Taylor, Head of UK DC Clients, Schroders; Harry Raikes, Head of UK Venture Investments, Schroders Capital
Makes the case for venture capital as a viable option for DC pension savers. Highlights government initiatives like LIFTS and the Mansion House Accord, and the opportunity for UK schemes to invest in domestic innovation and growth.

Smarter Fixed Income: Rethinking the Role of CLOs in DC Schemes

Authors: Michael Craig, Head of European Senior Loans; Mary Cahani, Head of Defined Contribution Distribution, Invesco
Examines how AAA-rated Collateralised Loan Obligations (CLOs) can offer diversification, income, and inflation protection for DC schemes. Discusses barriers to adoption and how simplified structures like ETFs and fund-of-one vehicles are improving access.

• The Pensions Management Institute (PMI) is the UK’s leading professional body for those working in pensions and retirement savings. With over 8,500 members, the PMI represents the broadest range of pensions professionals and trustees in the country. Its members are responsible for managing and advising some of the world’s largest pension schemes, making key decisions on substantial financial matters.

Press contact:

For media enquiries, please contact Matt Adams, Head of Media and PR at pressoffice@pensions-pmi.org.uk