A ‘megafund’ doesn’t sound like something that will hit the radar of scale-ups. Indeed, much of the news coverage of the latest pension reforms - where many major schemes, including local government pensions, will be pooled into ‘megafunds’ managing at least £25 billion in assets - focused on the impact on either retirees or the UK’s major infrastructure projects overall.
But the latest plans do offer good news for scale-ups. There has been a sharp decline in domestic investment by UK pension funds: around 20% of defined contribution assets are currently invested in UK-based projects, down from over 50% in 2012.
