Aviva Investors, the asset management arm of Aviva plc, has announced the addition of a dedicated Venture Capital (VC) and Strategic Capital capability to its investment offerings.
This move is part of a broader restructuring of its real assets division, now rebranded as Aviva Investors Private Markets.
The newly established VC and strategic capital desk will be formed by integrating the Aviva Ventures investment team into the private markets function. These assets span equity and debt strategies in real estate, infrastructure, private debt and structured finance.
This strategic decision aligns with the UK Government’s Mansion House Compact announced in July 2023, which aims to unlock investments into emerging industries, including unlisted companies, and stimulate economic growth. It also reflects Aviva Investors’ ongoing efforts to expand its private market offerings to meet the evolving needs of investors, particularly defined contribution pension funds, which have traditionally faced challenges in accessing private markets.
Aviva Investors has been active in this space, launching two Long Term Asset Funds (LTAFs) to enhance private market access. These include the Real Estate Active LTAF launched in May 2023, and the Aviva Investors Climate Transition Real Assets Fund, which now falls under the new LTAF regime. Together, these funds manage over £2 billion in assets.
Private market assets to surpass public markets, hitting $60tn by 2032
The VC and Strategic Capital team, led by managing director Ben Luckett, has managed VC investments for Aviva’s balance sheet for more than a decade. The team will initially consist of five full-time employees transitioning from their current roles.
Mark Versey, CEO at Aviva Investors, said: “Private markets assets today are severely underrepresented in the portfolios of UK DC pension funds relative to global peers. Driven by the UK’s supportive policy environment epitomised by the Mansion House Compact, the scale of the potential investment opportunity is significant. With two LTAFs already in the market we are actively looking at how to give clients suitable access to the full breadth of benefits that private markets can offer, including unlisted equities.”
Jill Barber, chief distribution officer at Aviva Investors, added: “We believe the potential returns are attractive and the addition of this investment team means we can continue to meet our clients’ increasing demand for exposure to opportunities across Private Markets.”
