Marsh McLennan’s Mercer to Invest in a Bespoke Long-Term Asset Fund for Private Markets With an Initial Commitment of £350 Million
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Very Positive)
Tags
Key Terms
long-term asset fundfinancial
A long-term asset fund is a pooled investment vehicle that buys and holds assets expected to produce returns over several years, such as real estate, infrastructure, bonds, or durable stocks. It matters to investors because it is designed for goals that need time to grow—like retirement or major purchases—offering potentially steadier returns and different risk, liquidity and fee profiles than short-term trading; think of it as planting a garden meant to mature over seasons, not a quick harvest.
master trustsfinancial
A master trust is a single legal structure that holds and manages assets for many separate retirement plans, pooled investment accounts, or beneficiaries under one roof. Think of it like an apartment building where each tenant has their own unit but shares the same maintenance, rules and service providers; for investors this can lower fees and simplify administration through scale, but it also concentrates governance and provider risk across all participants.
private market investmentsfinancial
Private market investments are stakes in companies, real estate, infrastructure projects or loans that are not bought and sold on public stock exchanges; think of backing a friend's startup or buying a rental property instead of trading shares on a market. They matter to investors because they can offer higher long‑term returns and direct ownership, but they are harder to value and sell quickly and often require locking up money for years, adding both potential reward and extra risk to a portfolio.
infrastructure equityfinancial
Ownership stakes in companies or projects that build, operate or maintain large public-use assets — such as roads, power plants, water systems, or telecom networks. For investors, this type of equity can behave like owning a piece of essential infrastructure that often produces steady, long-term cash flow and can act as a hedge against inflation, though it carries risks from construction delays, regulation and political changes.
listed equitiesfinancial
Listed equities are shares of a company that are officially registered to trade on a public stock exchange and must follow that exchange’s rules and disclosure requirements. They matter to investors because they are generally easier to buy and sell, have transparent market prices, and provide regular financial information — like buying a car from a licensed dealership rather than a private sale, making it simpler to check history, compare prices and resell.
assets under managementfinancial
Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.
LONDON--(BUSINESS WIRE)--
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)
