Mercer, a business of Marsh & McLennan Companies, has committed £350 million to the Schroders Mercer Private Assets Growth Long‑Term Asset Fund (LTAF), a vehicle focused on private equity and infrastructure equity that is set to launch in the first quarter of 2026.
The commitment is part of Mercer’s broader strategy to allocate at least 10 % of default pension fund assets to private markets by 2030, a target that aligns with the Mansion House Accord and reflects the growing trend of mainstreaming private‑market investments in the UK.
The LTAF will be managed by Schroders Capital, with Future Growth Capital Limited serving as the delegated investment manager. The fund will serve as a primary vehicle for private‑market allocations across Mercer UK’s Workplace Savings solutions, including its master trusts, and will provide members with greater access to higher‑return private‑market opportunities while diversifying the firm’s asset‑management portfolio.
Mercer’s UK Workplace Savings solutions, which include the Mercer Master Trust and the now:pensions Master Trust, collectively manage $683 billion in assets. The £350 million commitment represents a significant allocation from these master trusts and underscores Mercer’s commitment to expanding private‑market exposure for its pension‑plan members.
Phil Parkinson, Mercer UK’s Wealth Practice Leader, said the move “mainstreams private markets, adding diversification and innovation. The LTAF will provide access to growth‑focused private equity and infrastructure equity assets, helping to enhance long‑term returns and support better retirement outcomes.”
The investment positions Mercer and MMC to capture higher‑return opportunities in private markets, strengthens their competitive stance in the pension‑consulting and asset‑management space, and demonstrates a proactive approach to regulatory initiatives that encourage deeper private‑market participation by pension funds.
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