UK-based financial services firm Aviva has launched a venture and growth capital fund worth £150 million.
The group is offering its corporate pension investors fund access to startups and emerging target areas such as health and fintech. In total, Aviva is looking to provide opportunities for over 4 million members across 26,000 corporate pension schemes.
The contribution from Aviva will be sourced through both cash and assets. The launch conforms with the Long Term Asset Fund regime, which is designed to assist investors in accessing long-term assets more efficiently.
The fund has its sights on four different market sectors (fintech, health tech, science, and climate and sustainability) across the UK, Europe and North America, with the UK its primary focus. The fund follows the UK’s Mansion House Compact, which was announced by the previous government in July 2023. It listed a number of proposals to boost growth and investment in emerging industries.
Aviva is a founding signatory to the Compact, which seeks to stimulate investment into unlisted equities across its defined contributions pension business. Contribution pension providers are committed to allocate 5% of assets to growth equity and venture capital by the year 2030.
In a statement, Aviva CEO Dame Amanda Blanc said that the new fund will be a source of vital finance to the UK’s most exciting emerging businesses, promising rich returns. The UK’s private sector workplace defined contribution (DC) pension market is predicted to grow to approximately £1.3 trillion by 2044.
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