UK’s Largest Pension Fund Acquires Majority Stake in Private Credit Firm Venn Partners

The Universities Superannuation Scheme, the U.K.’s largest pension fund, bought a majority stake in private credit investment manager Venn Partners from Singaporean real estate manager ESR Group Ltd. Financial terms of the acquisition were not disclosed.

According to the £77 billion ($103.6 billion) USS, the deal, expected to close in the year’s second quarter, will allow Venn to expand its investments in the U.K. housing market. Venn had assets under management and active mandates of more than £11 billion as of December 31, 2025.

Venn currently manages more than £10 billion in the U.K., in addition to residential mortgage activities in the Netherlands. The firm stated that two of its U.K. initiatives are intended to help build new affordable housing and private rental homes, while two other initiatives look to provide home ownership for buyers underserved by traditional mortgage products.

“The partnership will reinforce Venn’s mission to deliver scalable, institutional-quality financing solutions that support the development of high-quality, sustainable homes,” Venn stated. “It will also unlock effective demand for homeownership and, ultimately, contribute to the long-term resilience of the U.K. housing market.”

As part of the deal, Venn’s management team will increase its ownership stake in the company.

A March report from English mortgage broker U.K. Mortgage Centre identified a U.K. housing crisis, with home prices remaining high and rents continuing to rise. According to the U.K. House Price Index, released monthly by the U.K. government, the average house price in the U.K. was £268,000 as of January, a 1.3% increase from one year earlier.

According to the UKMC report, average property costs for first-time buyers in the U.K. were nearly six times their average annual salary, which rises close to eightfold in England only, excluding other regions of the country. The report also noted that between April 2024 and September 2025, approximately 231,300 net additional homes were delivered in England, while the government estimates that about 300,000 new homes are needed each year to keep up with demand.