Partnering with the British Business Bank, Aegon UK intends to provide the cornerstone investment in the initial fund aimed at accessing the British Business Bank’s pipeline of high potential opportunities in venture capital, which will form part of Aegon UK’s private market allocation.

Pending regulatory approval, investment due diligence and commercial discussions, this initial investment will be integrated into Aegon UK’s flagship workplace default, the Universal Balanced Collection (UBC) fund. The transformation of Aegon UK’s UBC fund, which began in September, aims to improve outcomes for over 700,000 members and provide better risk-adjusted returns and value for money by offering access to a broader range of investment opportunities. This allocation to venture capital will form part of UBC’s diversified private markets allocation.

By partnering with the British Business Bank, Aegon UK will seek to benefit from their scale, access, and experience investing in innovative funds and companies. They are a long-term, committed investor, and through the British Growth Partnership they will be establishing investment vehicles that will provide access to venture capital leveraging their pipeline and expertise, providing diversified access and laying the foundation for long-term investments.

Mike Holliday-Williams, CEO of Aegon UK, said: “In June we announced plans to revolutionise our largest workplace default to include private market investments.

“This partnership with the British Business Bank further demonstrates our cutting-edge capabilities, with the aim of providing workplace savers with access to innovative investment opportunities that have previously been out of reach to DC pensions.”

Lorna Blyth, MD of Investment Solutions, Aegon UK, said: “We are on the path to evolve the Universal Balanced Collection fund and turn it into a default fund fit for the future.

“These changes build on our recent investment into our first bespoke Long Term Asset Fund and focus on robust risk management and diversification. We believe these changes will offer our members improved outcomes and value for money.

“By partnering with the British Business Bank, we can unlock investment into businesses with high growth potential through the British Growth Partnership, and capture the full commercial potential of world-class breakthrough technology companies.”

Louis Taylor, CEO of the British Business Bank, said: “This announcement is an endorsement of the work the British Business Bank is doing to support pension funds and other institutional investors to access venture capital opportunities.

“We are delighted to be working with Aegon UK as we prepare to launch the British Growth Partnership in 2025, demonstrating our objectives and vision for investing in growth are highly aligned.”