Private markets
We take a flexible approach, underpinned by the trust and support of the Trustee, the sponsoring employers and our members which empowers us to deliver on the long-term strategy strategies.
Our flexible, purpose‑driven private markets investment strategy
Our flexible approach allows us to dictate the pace in determining when and where we should invest and how we should navigate fixed asset allocation constraints. Our Private Markets team invests in illiquid, privately held assets (including private equity, venture capital and private lending) as well as more opportunistic investment opportunities. We assess our new investments for impact using the United Nations Sustainable Development Goals framework.
We want investments that will help us deliver our purpose to secure our members’ future. We focus on illiquid investments that offer the potential for the returns we need through capital growth or income. We think broadly and globally – we are not bound to any one sector, strategy or geography. We access private markets exposure through a variety of legal structures, from funds to direct share ownership in private companies. Our long-term mindset and investment horizons mean we are an ideal stable and strategic partner. We are outcome-oriented, focusing on the needs of the scheme and its members and are not constrained by chasing short-term benchmarks.
Discover the vital role of our investment beliefs
Investing in innovation
Railpen's investment in unique medical device company, Oxford Nanopore, introduced to us by IP Group who were looking for private investment from shareholders ahead of an expected initial public offering (IPO). Railpen saw an exciting opportunity to investment in this next-generation DNA sequencing company with products that already had important applications in human genome and infectious diseases and which looked set to expand over time. It's through investments like these that we're able to support our purpose to secure our members' future.
Public markets
We manage the Schemes’ investments in equities and fixed income, both directly and through overseeing external managers.
Our philosophy
The Public Markets team are primarily responsible for managing the assets of the Growth Fund, including the internal equity strategies and other pooled funds that invest in public market assets.
Public Markets is also responsible for implementing and executing all trading and portfolio management activities, covering equity, fixed income, foreign exchange, derivatives, and liquidity management.
We believe in the importance of maintaining strong in-house capabilities that enable cost control and transparency. We invest directly where we are confident in our knowledge and expertise. However, we partner with external support where we believe it is advantageous and would improve outcomes for our clients and members.
A good example of this is where we may wish to invest for a finite period or where there is a high degree of research required that other experts have a unique capacity for and track record in doing so. Railpen has a rich heritage of amplifying our own skills with solid external managers partnerships.
Our Public Markets team
The Fixed Income & Trading team is responsible for all portfolio management, execution and implementation activity.
They manage our internal government bond pooled funds, and oversee externally managed fixed-income portfolios. The team also manage our strong relationships with third-party providers across asset classes (Equities, Fixed Income, Derivatives and FX).
Our in-house expertise allows us to fully leverage our relationships and focus our resources in areas where we have knowledge and capability. Railpen’s internal Trading Desk enables us to efficiently execute trading activity, working in conjunction with various internal teams to sustain and enhance our execution capabilities and ensure best execution is achieved for our clients. The Trading Desk has three core areas of focus: execution, transaction cost analysis and market structure.
Our investments in action
TSMC
TSMC is the world’s leading dedicated semiconductor foundry, enabling chip designers to focus fully on innovation while relying on its advanced, high performance manufacturing. Its scale and sustained investment in cutting edge R&D underpin its technology leadership, producing the most advanced chips for sectors like AI, smartphones and high performance computing. This leadership, combined with deep customer partnerships and strong long term demand, forms a compelling investment case.
MIPS
MIPS provides a mission critical safety technology for helmets (primarily sports), using its patented Brain Protection System (BPS) to protect against varying impact forces. Its model is highly scalable and asset light, with long term licence fees from leading helmet brands providing durable, recurring revenues. Helmet brands licence the MIPS technology to incorporate it into helmet design and manufacturing. And with significant proportion of MIPS' revenues are composed of viable, long-term licence fees MIPS is well positioned for sustained growth.
CMR Surgical
CMR Surgical’s Versius robot delivers the benefits of minimally invasive surgery – reduced bruising, faster recovery and shorter hospital stays – while easing physical strain on surgeons. Its compact, modular design and portability allow hospitals to move the system between theatres, maximising utilisation and lowering adoption barriers. As one of the most widely used soft tissue surgical robots globally, Versius demonstrates strong clinical value and growing demand. It's strong growth and continued innovation further strengthen it's long-term value.
Real assets
Our member-first culture is at the heart of everything we do. Our Real Assets team builds an investment portfolio of property and infrastructure to secure our members’ pensions affordably, securely and sustainably, while also seeking to positively impact our economy, environment and communities.
Why we invest in real assets
The environment in which we operate is always changing. Our investment in a wide range of assets, including real assets (physical assets with an intrinsic worth like property and infrastructure), helps us to build resilient portfolios.
We also take a very long-term approach to investing, which can support more risk-adjusted returns and open up a diverse range of opportunities that help to secure our members' future, as well as helping us to have a positive impact on the world our members' will retire in.
Real assets tend to be more stable but less liquid than financial assets, often providing steady returns, regardless of market fluctuations. This makes them a good addition to our diversified portfolio because they help us to generate attractive, risk-adjusted returns over the long-term.
While we've invested across the globe for decades, our real assets portfolio is focused on the UK, where we can protect and grow members’ savings, while also boosting the UK economy, provide social and environmental benefits, and build thriving communities in which our members live or may visit. Investing in UK real assets has many advantages for us as we understand the political, economic, and planning landscape well.
Driving UK innovation and growth in Cambridge
Railpen is delivering transformative developments across Cambridge – creating sustainable places for people, businesses and innovation to thrive. Our latest video highlights two standout projects, Mill Yard and Botanic Place, at the heart of this work.
Our three property principles
Railpen drives sustainable UK growth by creating resilient, high‑demand assets that support communities, businesses and national economic priorities. Our strategic investment helps help nurture innovation, strengthen regional economies and deliver long‑term value for our members.
We’re committed to creating high‑quality, future‑ready real assets that set new benchmarks for amenity, efficiency and desirability. Across our diverse portfolio, Railpen delivers spaces that meet the highest expectations of occupiers, communities and partners.
Shaped by the people who use them, we engage deeply with occupiers, employees, customers and local communities to ensure our assets are relevant, inclusive and valued. Through collaboration and meaningful social impact, we deliver jobs, opportunities and sustainable benefits for communities.
1. Growth
Railpen is focused on supporting the growth of the UK, economically, socially and sustainably. In so doing, it delivers the best long-term, risk-adjusted returns to its members through the creation of resilient, in-demand assets.
This approach drives our acquisition, investment and development decisions, creating clusters of assets in both key economic sectors and geographical regions.
Our investment in AGR Power – a leading independent renewable infrastructure developer in the UK – is focused on deploying capital to support energy and food security.
This investment reinforces Railpen’s commitment to invest in innovative assets that grow our members capital over the long-term as, together with AGR, we see the opportunity to drive positive change and enhance energy and food security in the UK and Europe.
Growth-focused investments
Dartford X
Dartford X is a market leading industrial hub designed to support both national and regional distribution needs. Featuring sustainable, high spec warehouse units with excellent connectivity to the M25 and Dartford Crossing, it attracts diverse occupiers such as Caterham Cars. Our close engagement enables tenants to grow while retaining local jobs and supply chains. The scheme demonstrates Railpen’s commitment to resilient returns, operational excellence and thriving business communities.
Eastpoint Business Park
The redevelopment of Eastpoint Business Park will deliver a 200,000 sq ft life sciences campus comprising laboratories, flexible workspace and community focused amenities. Designed to support cutting edge research, the scheme blends high quality public spaces with a “Learning Lab” that connects local students to STEM opportunities. This investment strengthens the Oxford life sciences ecosystem and supports the UK’s ambitions in research, innovation and economic growth.
2. Quality
Railpen’s focus on supporting the growth of the UK means we are committed to creating and operating assets of the highest quality.
There's a ‘flight to quality’ across the real estate sector, with occupiers seeking the very best space, local and national government demanding the highest standards, and people – from consumers to office workers to residents – viewing quality as a key factor.
While our real asset portfolio is diverse, ranging from industrial parks to mixed-use developments, offices and retail, common throughout is our commitment to creating assets that set the benchmark for quality, amenity, efficiency and desirability in their sector or local market.
Quality-focused investments
South Mimms Logistics Development
Our upcoming 120,000 sq ft South Mimms facility – part of Railpen’s X branded logistics network – brings high quality industrial space to a prime M25 location. With EPC A+, BREEAM Outstanding and 30% Biodiversity Net Gain targeted, the scheme integrates meadows, water features and staff focused amenities. Positioned for low emission transport, it will enable electric last mile delivery, create long term skilled jobs and contribute £7.2m annually to the Hertfordshire economy.
Thames Wharf Studios
In 2018, we acquired the freehold interest in Thames Wharf Studios, Hammersmith – an iconic riverside workspace, offering a unique warehouse-style design overlooking the River Thames.
The building, transformed in the 1980s by renowned architect Richard Rogers, boasts a rich history as a hub of creativity and innovation. Once an industrial site, it is now home to architects, artists and the iconic River Cafe.
3. Community
Creating assets that thrive and deliver the greatest economic, social and sustainable benefits and legacy can only be achieved by understanding the people that'll use it. Railpen considers in detail not only the needs and wants of occupiers, from office tenants to retailers, but also their employees and customers.
By understanding how, when and why people will use our assets, including neighbours and the local community, we can create and operate places that have a fundamental, enduring appeal because they are relevant and people feel they belong.
In turn, this can lead to greater use of the offices by staff, or increased footfall and spend in retail locations because the assets reflect the wants and needs of the people using them. Working in a great office that has relevant, useful amenities is appealing to staff and to businesses. Similarly, creating retail assets that provide for a variety of needs and wants, such that they play a role in consumers’ lifestyles, creates loyalty that drives spend.
We understand that, working with our development and construction partners, we have a real opportunity to positively impact the environment and create social value. As part of our work, we dedicate significant time and resource to learning more about the communities in which we develop to provide tangible benefits for all in the form of new jobs, training opportunities, volunteering hours, and by creating more sustainable places that everyone can enjoy.
We actively and regularly engage with the local communities, gaining opinions and insights from a diverse range of residents, organisations, and other interested parties. We adopt a collaborative approach with like-minded businesses and charitable organisations as this helps us ensure that we deliver value locally, as well as for our members. Planning officers and local Councillors often cite Railpen as a model for effective stakeholder engagement.
Community-focused investments
Monkwearmouth Hospital, Sunderland
Railpen partnered with Argon PDS/SRM Capital Ventures to deliver a new 35,000 sq ft mental health facility at Monkwearmouth Hospital, replacing an outdated building with a modern, sustainable space. The redevelopment expands vital NHS services for patients of all ages while creating a welcoming environment with outdoor green space and staff gardens. This long term investment strengthens a key community service, supports improved wellbeing, and provides stable returns for our members.
Cambridge innovation cluster
Railpen is a major investor shaping Cambridge’s future through a cluster of science, technology and innovation focused developments. Projects such as Mill Yard, Botanic Place and The Beehive sit alongside a strong existing portfolio and position us at the centre of the city’s growth. These assets support high value employment, foster R&D collaboration and contribute to the UK’s leadership in STEM driven industries.