Scottish Widows is among the first UK workplace pension providers to invest directly in venture growth companies, initially targeting Oxford Quantum Circuits, Quantum Motion, Nyobolt and Genomics Limited. The CG Scottish Widows Growth LTAF will channel investment through IP Group, appointed by Aberdeen Investments to manage a portfolio focused on quantum computing, battery technology and AI-enabled healthcare.
“We believe pension savers should be able to benefit from the growth and innovation taking place across the UK,” says Peter Fitzgerald, chief investment officer at Scottish Widows. This partnership aims to connect workplace pension customers’ long-term savings with high-growth British firms, opportunities traditionally limited to institutional investors.
Scottish Widows Launches LTAF for Venture Growth
The fund’s strategy prioritizes quantum computing, advanced battery technology and artificial intelligence applications within healthcare, rather than broad-based technology sector exposure. This targeted approach reflects a belief in the UK’s potential to establish global leadership in these specific fields. Nalaka De Silva, head of private markets solutions at Aberdeen Investments, explained that a lack of sustained domestic capital previously hindered the growth of competitive UK companies.
“What competitive companies have lacked is sufficient pools of patient domestic capital to help them expand and grow,” said De Silva. “This partnership turns intent into investment; we are extremely proud to deliver one of the first active allocations by a UK DC workplace pension proposition to back British science and technology companies for the long-term benefit of pension members.” IP Group will manage the UK venture growth portfolio, overseeing these initial allocations and future investments.
Greg Smith, chief executive at IP Group, emphasized the broadened access this fund provides to pension savers. “We are helping create a pathway for millions of pension savers to participate in the value created by technology leaders,” Smith stated. He added, “It’s fantastic that the fund’s first UK investments span important areas including quantum computing, clean energy and healthcare innovation, sectors where the UK has the potential to build significant companies.” Scottish Widows anticipates this initiative will unlock further growth and deliver long-term returns for its members.
It’s fantastic that the fund’s first UK investments span such important areas including quantum computing, clean energy and healthcare innovation, sectors where the UK has the potential to build globally significant companies.
Greg Smith, chief executive at IP Group
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