Marsh McLennan's Mercer to Invest in a Bespoke Long-Term Asset Fund for Private Markets With an Initial Commitment of £350 Million
Mercer, a business of Marsh McLennan (NYSE:MMC) and a global leader in helping clients realise their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today announced plans for its UK Workplace Savings solutions, including its master trusts, to invest in the new Schroders Mercer Private Assets Growth Long-Term Asset Fund (LTAF) to increase members' access to private market investments.
The LTAF is expected to receive an initial investment commitment of £350 million from Mercer UK's master trusts in its first year, with further commitments to follow. It is anticipated to go live in the first quarter of 2026, subject to regulatory approval from the Financial Conduct Authority.
The LTAF will be launched by Schroders Capital, under the Schroders Capital Long-Term Asset Funds umbrella, with Future Growth Capital Limited serving as the delegated investment manager. Representatives from Mercer will also participate in a joint Investor Advisory Committee to provide ongoing governance. It will allocate capital to underlying investment mandates provided by Mercer and Schroders Capital, as well as third-party investment managers, where deemed appropriate.
The new LTAF will become the primary vehicle for private market allocations across Mercer UK's Workplace Savings solutions, including the Mercer Master Trust and the now:pensions Master Trust. It supports the trustee boards' ambitions to allocate at least 10% of default pension fund assets to private markets by 2030, with a minimum of 5% invested in the UK. As signatories to the Mansion House Accord, the trustee boards recognise the significant potential of investing in private markets with the aim of delivering strong returns and better outcomes for their members.
The LTAF will sit within the master trusts' growth portfolios and will initially focus its illiquid investments in private equity and infrastructure equity. These are the asset classes the trustee boards believe are best placed to deliver strong, long-term returns for members, while bolstering retirement outcomes and increasing diversification across the master trusts' portfolios. The LTAF will also hold listed equities to meet liquidity requirements, and it intends to allocate a meaningful share of its investments to UK-based growth opportunities.
"Mercer, combined with the now:pensions Master Trust, collectively manages billions of assets and has global private markets research and implementation capabilities. Working together allows both master trusts to have larger allocations to private market asset classes with the potential for higher returns," said Phil Parkinson, Mercer UK's Wealth Practice Leader. A leading global investment manager, Mercer has $683 billion in assets under management as at 30 September 2025.
"Private markets have moved from the margins to the mainstream – adding diversification and innovation. The LTAF aims to provide access to growth-focused private equity and infrastructure equity assets, helping to enhance long-term returns and support better retirement outcomes," Mr. Parkinson said.
Dame Susan Langley, Lady Mayor of the City of London, added: "Mercer and now:pensions are taking real steps to deliver on the ambition of the Mansion House Accord. A commitment of this size to a long-term vehicle focused on UK growth will help deliver better returns for savers and strengthen our position as one of the world's most competitive investment markets. It reflects a great confidence in Britain's future."
About Mercer
Mercer, a business of Marsh McLennan (NYSE:MMC), is a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit mercer.com, or follow us on LinkedIn and X.
About now:pensions
now:pensions is an award-winning UK workplace pension provider that manages the retirement savings of millions of members on behalf of tens of thousands of employers from a wide range of industries. The company is a business of Marsh McLennan (NYSE:MMC) and specialises in delivering robust risk and investment management services to support better pension outcomes.
About Schroders Capital
Schroders Capital provides investors with access to a broad range of private market investment opportunities, portfolio building blocks and customised private market strategies. Its team focuses on delivering best-in-class, risk-adjusted returns and executing investments through a combination of direct investment capabilities and broader solutions in all private market asset classes, through comingled funds and customised private market mandates.
The team aims to achieve sustainable returns through a rigorous approach and in alignment with a culture characterised by performance, collaboration, and integrity.
With $111 billion (£81 billion; €94.5 billion)* assets under management, Schroders Capital offers a diversified range of investment strategies, including real estate, private equity, secondaries, venture capital, infrastructure, securitised products and asset-based finance, private debt, insurance-linked securities and BlueOrchard (Impact Specialists).
*Assets under management as at 30 June 2025 (including non-fee earning dry powder and in-house cross holdings)
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Media contacts:
Tim Matthews
Mercer
+44 (0)07793 088 741
tim.matthews@mmc.com
now:pensions
Press Office
pressoffice@nowpensionstrust.com