Federated Hermes makes UK investment with British Business Bank support
What happened
Federated Hermes is unlocking investment in UK sectors alongside the British Business Bank. This action occurs as the UK's defined contribution pensions industry allocates only 3.5% of its assets to private markets, lagging international peers.
Why it matters
The move aligns with the government's Pensions Investment Review and the Mansion House Accord, which commits major UK pension providers to allocate at least 10% of default funds to private markets by 2030. This trend is helping to unlock capital for innovative UK sectors.
Who's involved
- Federated HermesMaking its first private markets investment in the UK.
- British Business BankHelping to unlock investment in UK sectors.
- governmentDriving initiatives like the Pensions Investment Review and the Mansion House Accord.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- British Business BankSpeculative
Could see increased demand for its services as it helps unlock investment in UK sectors.
- Federated HermesSpeculative
May benefit from market conditions and tailwinds supporting its institutional investment strategy.
Keep exploring
The entities involved
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Europe
terrestrial continent located in north-western Eurasia
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Federated Hermes
American financial services company
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British Business Bank
UK state-owned economic development bank
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