The Financial Conduct Authority (FCA) has granted approval for Aegon UK to launch the final two of its long-term asset funds (LTAFs) following the approval of the first last month.

The FCA’s approval was highlighted as the culmination of a rigorous selection, design, and regulatory process and as reflection of Aegon’s obligations as one of the founding signatories of the 2023 Mansion House Compact.

Aegon said this development would keep it on track to deliver private market investments to overhaul its largest workplace default fund, the £12bn Universal Balanced Collection (UBC), by providing exposure to private markets for the fund's 700,000 savers.

Since October 2024, BlackRock has managed a bespoke, diversified alternative private markets strategy for Aegon, including private equity, private debt, real estate and infrastructure.

From H2 2025, Aegon Asset Management's private credit LTAF will provide diversified exposure to its leading private credit strategies, including corporate lending, fund financing, insured credit, renewables, and asset-backed finance.

Also, from H2 2025, J.P. Morgan Asset Management's bespoke strategy, which leverages the firm's alternative platform, will offer exposure to private markets through private equity, infrastructure, transportation, and forestry investments, completing UBC's trio of private market LTAFs.

Aegon managing director of investment proposition, Lorna Blyth, commented on the news: "The success in receiving authorisation for all three LTAFs marks real progress in offering our workplace pension members access to the best available asset classes that are in line with our objective to provide better outcomes and value.

"This tangible action is in line with government objectives and will allow members to share in the successes of growth companies and the higher returns expected from other alternative investments,” she continued.

“Our journey doesn't end here – next up is our cornerstone investment into the British Growth Partnership, subject to regulatory approval, which will tap into the full commercial potential of world-class breakthrough technology companies based in the UK."

"We are committed to maintaining our position as leaders in investment innovation, using our scale to access new asset classes and drive better member outcomes," Blyth added.

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