Carne Group and WTW have gained regulatory approval for the launch of a private equity-focused Long Term Asset Fund (LTAF).

The fund, named the CG WTW Private Equity Access LTAF (CG WTW PEAL), will offer institutional and professional investors exposure to private equity primarily through co-investments, allowing them to invest in a range of opportunities.

This follows regulatory approval by the Financial Conduct Authority, after the fund’s proposed launch was first announced in April 2024.

Macfarlanes provided legal advice to Carne and WTW, while Carne Group’s UK authorised fund manager will act as the fund’s authorised corporate director.

CG WTW PEAL is the first private capital evergreen, semi-liquid LTAF launched by WTW, which has further plans for other solutions for savers across the UK, Europe and internationally.

Furthermore, across Europe the fund has approximately $850m of client interest to-date.

In addition to this, LifeSight, WTW’s defined contribution (DC) pensions master trust, has agreed to allocate up to 5 per cent of its LifeSight Equity default fund into private equity.

WTW said private equity investments provide a great way to help savers maximise long-term returns from private markets and are an obvious place for long-term illiquid DC asset strategies to start.

The launch of the LTAF aims to support broader industry initiatives to better align the long-term investment needs of end investors, including DC savers, and invest into private equity assets that have historically been difficult for DC and private investors to access.

Commenting on this, Carne chief business development officer, Mark Stockley, said: “Carne and WTW’s LTAF represents a significant milestone in the opening up of private equity to UK pension savers.

“We’re delighted that Carne continues to be the partner of choice for bringing these innovative products to market.”

WTW head of private market solutions, Ben Leach, added that seeing this dedicated private equity fund launch come into fruition was a “proud moment” for WTW as a business.

“We look forward to seeing the benefits this will bring to end savers looking to grow their wealth through allocations to the asset class,” Leach added.

Macfarlanes investment management partner, Lora Froud, commented: “Having been heavily involved in designing the LTAF framework, Macfarlanes is pleased to have acted as a legal adviser to WTW and Carne on this important fund launch.

“Exposure to private equity will hopefully improve returns and diversification for members and reduce volatility in their portfolios.”

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