A report from The Pensions Regulator (TPR) into barriers to investing in the UK has called on trustees to turn to independent investment advisers.
The report encourages trustees to work with financial advisers and pension specialists to assess whether they have the scale, expertise and governance capabilities needed to invest in UK private market investments.
According to the TPR, pension schemes want to invest in UK private markets but progress is being held back by practical barriers and structural limitations.
It found that larger schemes with greater scale, governance capability and better access to specialist investment expertise are generally better place to invest in UK private markets.
Barriers for smaller schemes include policy and regulatory uncertainty, capability and knowledge gaps, opaque fee structures, limited transparency, restrictive market structures and limited availability of suitable investable opportunities.
Reacting to the report, Torsten Bell MP, Minister for Pensions, said: "Pensions are a huge source of potential investment in this country, and we want schemes to be able to back UK growth as well as deliver good outcomes for their members.
"This research moves us closer to understanding the barriers holding schemes back, helping us work with industry to unlock investment that supports a stronger economy and better retirements for savers."
Workplace pensions currently hold around £2trn in assets, according to the regulator.
TPR is the regulator of work-based pension schemes in the UK. Its mission is to protect savers’ money, help to enhance the pensions system, and support innovation in the interests of savers.