Fast reading
- The UK’s deep and dynamic capital base, supported by a broad range of industry- and government-backed schemes, has the potential to strengthen the UK’s private markets opportunity set across key sectors over the coming years.
- UK institutional investors currently allocate about 12% of their portfolios to private markets1 – less than their North American peers – while the UK pensions industry allocates just 3.5% of its assets to private markets, suggesting significant untapped potential for investment in the sector2 .
- At Federated Hermes, our established position in the industry and strong network allows us to access some of the most compelling investment opportunities across the key private asset classes.
Transformation and the ‘four Ds’
The UK occupies a unique place in the global investment landscape for private markets. Historically a hub for traditional industries – such as finance – the UK also provides fertile conditions for high-growth private enterprises to flourish and so drive the next phase of the UK’s economic growth story.
At Federated Hermes, we invest in the innovators, the infrastructure and the places best positioned to support and benefit from this next chapter.
The global economy is being transformed by the ‘four Ds’ (demographics, deglobalisation, digitisation, and decarbonisation), and companies providing solutions to the challenges created by these forces are most likely to thrive. However, private capital – and the expertise required to deploy it – are essential to enabling these businesses to scale and fully realise their potential.
Private Markets: Investing in the future of the UK economy report
For more information on Private Markets
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1 Aviva Group, Private Markets Study 2026.
2 Ibid.
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