UK pension funds launch £1bn scale-up investment drive. By Waverly Drummond September 18, 2026 Nest, Railpen, and three Local Government Pension Scheme pools have announced plans to combine resources for a £1 billion fund dedicated to supporting UK businesses at the scaling stage, following a government statement on July 27. The move represents an effort to redirect pension investments away from overseas markets - particularly the US - and toward domestic companies in science and technology sectors. The British Business Bank will assist in matching investors with suitable opportunities. Prime Minister Andy Burnham positioned the initiative as part of broader economic strategies to "reindustrialise Britain" by tying pension capital to job creation and entrepreneurial growth. Chancellor John Healey stressed the importance of retaining economic activity within the UK, framing the fund as a tool to make the country a leading destination for business expansion. The announcement follows years of advocacy from pension funds for a dedicated scale-up vehicle. Railpen, which oversees £34 billion in assets, has long pushed for such a fund. In December, its head of UK productive assets, Julia Diez, identified key obstacles in the UK's venture and growth equity markets, including persistent illiquidity and insufficient long-term funding. She noted that the sector's fragmentation made it difficult for domestic companies to access consistent support from local investors. The new initiative aims to address these gaps by consolidating institutional capital. Nest, the UK's largest workplace pension provider, confirmed earlier this month that it would allocate up to £1 billion to venture capital strategies through a partnership with Schroders Capital. The three participating LGPS pools, Border to Coast Pensions Partnership, Local Pensions Partnership Investments, and LGPS Central, will collaborate with Nest and Railpen to formalise the fund's structure. Secretary of State Jonathan Reynolds, leading the newly formed Department of Business, Innovation, Science and Trade, described pension schemes as key drivers of long-term economic growth, particularly if investments align with savers' interests. However, industry experts have raised concerns about potential risks. Elisabeth Storey, head of pensions at RSM UK, warned that trustees must carefully balance growth-oriented allocations with their fiduciary responsibilities. She emphasised the need for robust governance, expert oversight, and a clear investment rationale to justify increased exposure to scaling businesses. Despite these cautions, industry leaders have expressed optimism. Michael Moore, CEO of UK Private Capital, praised the fund as a step toward filling a long-standing capital gap in UK markets. He encouraged more defined-contribution pension schemes to participate in venture and growth funds. Executives from the participating funds echoed this sentiment, highlighting the potential to align financial returns with broader economic benefits. The UK's venture capital sector has historically depended on foreign investment, particularly from the US, to fund its most promising startups. While the country produces innovative companies, many struggle to secure the long-term capital needed to expand domestically. If successful, this fund could reverse that trend by channeling institutional capital into early-stage and growth-phase businesses. The primary challenge will be ensuring the governance and expertise exist to justify the risks to pension savers.

Railpen commences works on South Mimms X industrial development. Aug 21, 2026 Railpen, manager of the UK's around £36bn railways pension scheme, has started construction works at South Mimms X, a 122,820 sq ft exceptionally well-connected logistics and industrial development. With completion targeted for Spring 2027, it will be the latest addition to Railpen's growing industrial portfolio, which comprises state-of-the-art, prime Grade A industrial and logistics facilities located strategically around the M25. Located at the intersection of the A1(M) and M25, adjacent to South Mimms Services, South Mimms X marks Railpen's latest milestone in its investment into the logistics and industrial sector, developed in partnership with Wrenbridge. Positioned just 14.5 miles from central London, the 122,820 sq ft scheme will offer a market-leading specification in an unrivalled location, incorporating a 68m secure gated yard. Designed to target a wide range of operators, the facility will also feature 13 dock loading doors, two Euro dock doors, and two level access doors. It will be well-positioned to support the transition to EV fleets, with 18 active EV charging spaces, alongside 98 car parking spaces. Sustainability is embedded throughout the design, which is targeting net-zero carbon, as well as BREEAM Outstanding and EPC A+ ratings. The scheme will also deliver 2.5 acres of landscaped amenity space, achieving a 30% biodiversity net gain through features including on-site wildlife boxes and an urban orchard. Once complete, the scheme will benefit from the adjacent high-quality, people-focused amenities to support occupier wellbeing and productivity. Alastair Dawson, UK Industrial Sector Lead at Railpen, commented: "South Mimms X reflects Railpen's ongoing commitment to producing best-in-class developments that support local economies and enhance surrounding communities. The site is exceptionally well located on the M25, with access to the entirety of Greater London within 90 minutes. With well-connected, high-quality industrial space in increasingly short supply, this scheme has been designed to stand out. Building on our established track record and Wrenbridge's extensive expertise, South Mimms X is well placed to set a new benchmark for logistics in the South East." Will Jarman, Associate Director at Wrenbridge, added: "Railpen's X portfolio is becoming a clear example in the industrial and logistics sector of how a landlord can demonstrate ongoing commitment to delivering best-in-class facilities, and one that goes above and beyond the wants, needs, and expectations of occupiers and their employees. There is a clear demand for accessible industrial space in this location, and it is great to be partnering with Railpen once again to deliver another high-quality scheme." South Mimms X is just one of the many assets included in Railpen's property portfolio, which currently has over 3 million sq ft of space under construction or with planning consent, with a forecast construction cost in excess of £500 million by the end of 2030. The development will join Railpen's expanding 'X' branded portfolio of industrial sites, alongside Dartford X, Waltham X and High Wycombe X. Each development is strategically located and designed to meet occupier demand for best-in-class, highly sustainable industrial space.

Appointments: TfL pension chief joins Railpen board; BA trustees re-elected. The latest hires, promotions and appointments for the week ending 7 August 2026. Martin Hunter, chief executive of the Transport for London (TfL) Pension Fund, has joined the trustee board of the Railways Pension Scheme, it announced this week. Hunter is also director of pensions at TfL, and previously worked for Railpen as head of integrated funding. He said: "I am a very strong believer in the vital role that pensions - and in particular, DB schemes - play in providing security and financial dignity to workers in their retirement, and I am proud to be called to serve the members of the Railways Pension Scheme." The board has also added John McBride, who is a former chief superintendent with the British Transport Police (BTP) and a member of the force's own pension scheme trustee board. Christine Kernoghan, chair of the Railways Pension Scheme trustee board, said: "At a time of significant change across both the pensions and rail industries, the years of experience and variety of skills [Martin and John] each bring to the role will be invaluable as the trustee board continues to deliver its mission to pay members' pensions securely, affordably and sustainably." The duo replace John Wilson, who has been a trustee director since 2008, and Peter Holden, who has been on the trustee board since 2019. Four trustees were re-elected, including Adam Golton, Charles Harding, Richard Goldson and Fatima Baig. Two trustees re-appointed at British Airways. Members of the £4.7bn Airways Pension Scheme have re-elected two member-nominated trustees for a term of five years. Ian Heath and Philip Hogg were re-elected last month by members and pensioners, according to an announcement on the scheme's website. The Airways Pension Scheme has more than 18,000 members in total and is one of two large defined benefit schemes sponsored by British Airways, alongside the £12.7bn New Airways Pension Scheme. Heath and Hogg sit on the Airways Pension Scheme's trustee board along with two other member-nominated trustees, Paul Douglas and Frances Axford, as well as three employer representatives and Vidett's Wayne Phelan, the scheme's independent chair. Douglas and Axford were re-elected for five-year terms in August 2025. Standard Life adds to business development team. Standard Life has appointed Tom Chalkley as business development director in its workplace pensions team. In his new role, Chalkley will oversee relationships with consultants, employers and trustees, the company said. He previously worked at Isio in the consultancy's defined contribution consulting team, and previously worked at KPMG before its pensions team spun out as Isio. Standard Life's workplace business reported net inflows of £5.3bn in 2025 and added nearly 250,000 new customers.