The Society of Pension Professionals (SPP) has urged trustees to consider investing in private markets, after its research found limited involvement from defined contribution (DC) schemes.

At an event with over 100 pension professionals, attendees were asked to what extent the DC schemes they advised were currently involved in private market investment.

The majority (73 per cent) said they were "minimally involved", and 15 per cent to a "reasonable degree", while 12 per cent answered, “not at all”.

The event featured senior industry professionals from The Pensions Regulator (TPR), Mercer, Aon, and the International Governance Group (IGG), who explored some of the key challenges and opportunities of investing in illiquids, including why they were not solely for the largest schemes, how master trusts were approaching private market investment, and common governance challenges.

At the end of the event, attendees were asked to assess their views on private market investment for the DC schemes they advised, based on what they had heard from the expert panellists.

More than three-quarters of respondents (76 per cent) answered that this was something trustees should seriously consider for many or all schemes.

Nineteen per cent stated that it was an occasional opportunity, and only 5 per cent concluded that private market investment was not suitable.

Mercer head of investment strategy, SPP member and event panellist, Jane Walker, said it was an “illuminating” event that really delved into the nuts and bolts of private market investment.

“Despite its challenges, the market clearly represents a sizeable opportunity for many schemes,” she continued, adding that the wider industry appeared to agree, with "nearly all" of those polled stating this was something that represented either a serious opportunity for many schemes or at least an occasional opportunity.

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