New opportunities for investors
With regulatory reform, demographic change and fintech innovation reshaping where money flows and how it is put to work, the UK remains one of the most compelling places for investors to deploy capital.
Two developments in particular stand out: the first, a significant shift in how the country’s largest pension schemes allocate capital, driven by the Mansion House Accord, the second the UK’s growing role as the West’s leading hub for Islamic finance.
Both are creating new opportunities for investors who look beyond traditional asset classes, and both are areas where we are seeing real momentum.
Mansion House: pension capital starts to flow
Up to £50 billion is starting to flow into UK businesses and infrastructure following the Mansion House Accord, signed in May 2025 by seventeen of the UK’s largest workplace pension providers. The Accord reflects a clear policy ambition: to channel long-term pension capital into productive investment at home, supporting growth while seeking better outcomes for savers.
The effects are now becoming visible.
In recent months we have seen additional pension providers pursuing opportunities in private credit and asset-backed investments, where the secure nature of the underlying assets is a key attraction. For schemes widening their allocations beyond public markets, these strategies offer a way to access differentiated sources of return with a strong focus on capital protection.
Why asset-backed credit is increasingly relevant
Asset-backed credit is secured against real, identifiable assets, which gives investors a tangible foundation for returns and a clearer view of risk. That profile aligns closely with what pension providers are looking for as they build exposure to private markets.
Our short-term asset-backed fund is increasingly relevant to these strategies. Its short-duration focus supports portfolio liquidity planning, while its asset-backed structure provides the security that long-term investors rightly prioritise.
We are excited to be working with several investors in this space and expect engagement to continue growing as the Mansion House commitments move from intent to implementation.
The UK as the West’s leading Islamic finance hub
Alongside the pension shift, the UK is strengthening its position as the West’s leading hub for Islamic finance. Sharia-compliant products, from home-purchase plans to student financing and auto leasing, are moving from niche to mainstream, reaching customers who have long been under-served by conventional offerings.
This growth is underpinned by demographics and by demand for finance that reflects personal values. As more consumers seek ethical, Sharia-compliant options for the biggest purchases in their lives, the underlying asset pools and the investment opportunities they create are broadening. For investors, that opens clear avenues for engagement, particularly for those seeking ethical, values-aligned exposure to demographically backed growth markets.
What this means for investors
Pension reform and the rise of Islamic finance share a common thread: both are directing capital towards real assets and real economic activity, and both are creating demand for credit solutions that are secure, transparent and well structured.
We are seeing rising demand in this area, and we continue to work with innovative firms to provide original, tailored solutions across both Sharia and conventional finance.
If you would like to discuss how these themes could fit within your investment strategy, we would be delighted to hear from you.
Since 2007, our investing expertise has served the financial return needs of our clients and provided businesses with innovative debt capital solutions for growth.
To find out more, contact Tony Smedley or Aakriti Mehta.
