In her Mansion House speech, Chancellor Rachel Reeves announced that Aegon UK, a pension and investment solutions provider, and NatWest Cushon, a pensions and savings provider with a DC master trust, have collaborated with the upcoming British Growth Partnership, with plans to invest in its initial fund, which is expected to launch in 2025, pending regulatory approval.
This partnership represents a step toward strengthening UK-based investments, specifically by directing institutional support to high-growth, innovative companies poised to drive economic growth.
The British Business Bank will lead the British Growth Partnership with a mission to attract UK pension funds and institutional investors to back the nation’s most promising ventures. The initial fund targets raising funds, including investment from the British Business Bank, to support top opportunities within the Bank’s venture capital pipeline.
Louis Taylor, CEO, British Business Bank, said: “This announcement is an endorsement of the work the British Business Bank is doing to support pension funds and other institutional investors to access venture capital opportunities. We are delighted to be working with Aegon UK as we prepare to launch the British Growth Partnership in 2025, demonstrating our objectives and vision for investing in growth are highly aligned.
Teaming up with the British Business Bank, Aegon UK plans to make a cornerstone investment in the Partnership’s initial fund, focusing on high-potential venture capital opportunities from the British Business Bank’s pipeline. This investment will be part of Aegon UK’s private market allocation and, pending approval and due diligence, will be integrated into its flagship workplace fund, the Universal Balanced Collection (UBC), benefiting over 700,000 members with diversified, risk-adjusted returns.
Through this collaboration, Aegon UK plans to tap into the British Business Bank’s expertise, scale, and access to innovative companies and funds. By bringing venture capital into the UBC fund, it aims to offer members wider, long-term investment opportunities, strengthening its commitment to delivering greater value and better outcomes in workplace pensions.
Mike Holliday-Williams, CEO, Aegon UK, said: “In June we announced plans to revolutionise our largest workplace default to include private market investments. This partnership with the British Business Bank further demonstrates our cutting-edge capabilities, with the aim of providing workplace savers with access to innovative investment opportunities that have previously been out of reach to DC pensions.”
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Lorna Blyth, MD of investment solutions, Aegon UK, added: “We are on the path to evolve the Universal Balanced Collection fund and turn it into a default fund fit for the future. These changes build on our recent investment into our first bespoke Long Term Asset Fund and focus on robust risk management and diversification. We believe these changes will offer our members improved outcomes and value for money. By partnering with the British Business Bank, we can unlock investment into businesses with high growth potential through the British Growth Partnership, and capture the full commercial potential of world-class breakthrough technology companies.”
Ben Pollard, CEO, NatWest Cushon said: “As a signatory to the Mansion House Compact, we see the UK growth agenda as a win-win. By investing in impact focused sectors and UK high growth companies, we’re helping secure better outcomes for pension savers and a better future for them and broader society. Initiatives like the British Growth Partnership are critical to giving pension schemes access to these investment opportunities.”
Both partners have also pledged to work closely with the British Business Bank to help shape additional products that open up high-quality investment opportunities in UK growth assets.
