Private Assets

Many successful companies begin in the private markets, making it a rich source for identifying early‑stage opportunities with meaningful growth potential. The LTAF focuses on thematic investing across major megatrends, working with specialist managers whose sector expertise supports disciplined selection, value creation, and effective exits.

By investing primarily through leading private equity managers, we maintain deep relationships and ongoing access to high‑quality opportunities, enabling us to deliver a focused and compelling private equity strategy for our DC members.

Fidelity’s real estate platform is built on deep sector research and active asset management, facilitating selection and capital deployment with long‑term structural trends shaped by sustainability, demographics and the needs of modern economies.

Our approach targets value‑add real estate capturing shifts in household composition, urbanisation and increasingly complex supply chains, while also benefiting from demographic forces such as ageing populations, where demand for supportive living solutions is rising globally.

The LTAF focuses on value‑add and core+ risk‑return profiles, directing capital towards key megatrends shaping the economy. These include the energy transition and the expansion of digital infrastructure, both critical enablers of artificial intelligence.

The G20 Global Infrastructure Hub has estimated a $15trn shortfall by 20401 in providing essential infrastructure across areas like transport, electricity, telecommunications and water. FutureWise has a clear role in supporting these megatrends and improving quality of life for our members.

The private credit allocation is a crucial source of diversification and liquidity, given the inherently cash‑generative nature of the asset class. The private credit market has expanded significantly over the past decade, and although parts of the universe are now experiencing increased stress, the asset class remains compelling. Success depends on disciplined underwriting, rigorous due‑diligence capabilities, and a demonstrable long‑term track record.

Keeping this in mind, The LTAF places a strong emphasis on manager selection, prioritising those with long, demonstrable track records and a proven capability to manage default risk through different market cycles.

The liquidity allocation is built through rigorous scenario modelling, ensuring the LTAF can maintain its strategic allocation to private assets even during sustained public‑market stress. This approach protects the private asset allocation from DC liquidity demands and supports long‑term ownership, reducing the risk of forced sales in adverse markets where value erosion can be significant.

Liquidity is sourced through sustainably integrated, research‑enhanced global equities to retain a growth focus, complemented by a small allocation to cash‑equivalents to support efficient ongoing private‑asset deployment.