Mercer commits £350m to Schroders LTAF

Written by Michael Griffiths

15/12/2025

Marsh McLennan’s Mercer has announced a new investment in the Schroders Mercer Private Assets Growth Long-Term Asset Fund (LTAF), to increase members’ access to private market investments.

The LTAF is expected to receive an initial commitment of £350m from Mercer UK’s master trusts in its first year, with further commitments to follow.

Mercer confirmed the LTAF will sit within the master trusts’ growth portfolios and will initially focus its illiquid investments in private equity and infrastructure equity. The LTAF will also hold listed equities to meet liquidity requirements, and it intends to allocate a meaningful share of its investments to UK-based growth opportunities.

The LTAF will be launched by Schroders Capital, under the Schroders Capital Long-Term Asset Funds umbrella, with Future Growth Capital Limited serving as the delegated investment manager.

Mercer also stated that the LTAF will become the primary vehicle for private market allocations across Mercer UK’s workplace savings solutions, including the Mercer Master Trust and the now:pensions Master Trust.

“Mercer, combined with the now:pensions Master Trust, collectively manages billions of assets and has global private markets research and implementation capabilities,” Mercer UK’s wealth practice leader, Phil Parkinson, commented.

“Working together allows both master trusts to have larger allocations to private market asset classes with the potential for higher returns.

“Private markets have moved from the margins to the mainstream – adding diversification and innovation. The LTAF aims to provide access to growth-focused private equity and infrastructure equity assets, helping to enhance long-term returns and support better retirement outcomes.”

The LTAF is anticipated to go live in the first quarter of 2026, subject to regulatory approval from the Financial Conduct Authority.

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