Raising awareness of the benefits and risks of private assets that can drive growth

Last week, M&G plc joined 16 other leading financial services firms in the London to sign the Mansion House Accord – a voluntary agreement to boost investment in private assets, including those in the UK.

I highlight why it’s a timely and necessary step - but only the beginning, in The Times published 18th May. We must now build momentum, raise awareness, and engage the public and policymakers on the value and potential of private assets.

Private assets play a vital role in fuelling UK growth by supporting infrastructure – including housing, education, health facilities and cleaner transport – and job creation.

At M&G, we’re already investing heavily in private markets both in the UK and globally, including through our £64bn PruFund. Its scale, diversification, and financial strength allows us to offer daily liquidity while managing long-term risk and volatility – making private assets more accessible to everyday savers.

We’re not alone. Several other firms are also providing access through pension funds and specialist managers. But to grow the capital pool and truly democratise access, we need an informed debate on accessibility, transparency, fees, and the role private assets play in a diversified portfolio. Telling this story, therefore, requires a clear understanding of the risks alongside the benefits so we can give people real confidence to put their money to work.

For example, unlike public markets, due to limited real-time valuation data, private assets rely on the research and expertise of in-house managers to assess performance. Portfolio managers are skilled practitioners and fully accountable to their clients. And while fees may be higher, they reflect the complexity involved – and the illiquidity premium rewards investors for taking on added risk and reduced flexibility in an investment that often takes time to source, analyse, and mature.

It is now time to shift the conversation from the cost of pensions to the value they deliver – and the impact that investing in private assets can make transforming communities and the economy at large.

And finally, private assets matter for the future of public markets. Strengthening private markets will help grow UK companies that may not yet be ready to list, but which could in time – expanding the pipeline of domestic listings.

If we get this right there will be multiple benefits for the UK. With the current renaissance in European markets, as global investors look to diversify, we have the opportunity to become a true leader in private assets.

You can read the full article in The Sunday Times.

Reframing later life

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