Research Report

Powerful Pensions | Unlocking DC capital for UK tech growth

Posted: 27 Mar 2023

Resource Type: Research Report

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Unlocking domestic institutional investment is key to helping the most creative and innovative businesses in the UK to thrive.

Defined contribution (DC) pension fund capital is an untapped source of investment for growing firms. If funds could invest into innovative firms at growth stage, via private equity and venture capital, both pension holders and firms could benefit.

Powerful Pensions: Unlocking DC Capital for UK Tech Growth explores how challenges surrounding domestic institutional investment to UK FPS Tech can be addressed.

This report makes recommendations that will help support high-growth industries to start, stay and scale in the UK.

A key recommendation is a Future Growth Fund (FGF). The FGF would be led by the private sector and funded by private DC pension schemes. This approach would enable VC and PE investment into FPS Tech, as well as life sciences, biotech and green technology. And it will give DC pension savers the chance to invest in growth companies.

The City of London Corporation has welcomed the Chancellor’s Spring Budget announcement on unlocking DC fund investment. We have been working with the sector on the potential £50bn FGF. And we look forward to working with the Government on these plans as they develop.

Download the brochure for more on the UK’s investable FPS tech sector

UK financial and professional services tech:
innovation and investor opportunity

UK financial and professional services tech:
innovation and investor opportunity

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