UK universities: A nexus for Private Market investment
Our report examines the economic drivers, growth potential, and the place for university-related investments in institutional investors’ portfolios.
University-related investments can be considered a distinct private market investment theme, in our opinion, given they combine opportunities in real estate, credit and private equity. These are spread across risk profiles.
Convictional views on university-linked investments can inform investors’ choice between funds active within a single asset class (such as diversified property funds); funds investing across asset classes (where blended returns may be achieved); or between managers based on their thematic conviction and ability to unlock opportunities.
The investment potential is significant. £14.5 billion has been invested into 1,880 UK university spinouts over the past decade[1]. The UK stock of purpose-built student accommodation (PBSA) is estimated at 788,000 beds[2] while market adjacencies that may indirectly benefit from universities is significant, with 8.2 million sq ft of investable floorspace in Oxford and Cambridge alone[3].
There are approximately 3 million people in full-time education in the UK[4] which is broadly the equivalent of all office workers in London[5]. The resultant real estate requirements to educate, house, and entertain these students, while also enabling the success of start-ups and spinouts is notable.
You can read the full report here.
For professional investors only. Capital at risk.
[1] Beauhurst, Spotlight on Spinouts, 2024, L&G
[2] StuRents, Knight Frank, December 2024
[3] Valuation Office Agency floorspace statistics, May 2020, within City local authority boundaries
[4] HESA, 2025
[5] L&G calculations form ONS workforce jobs data, 2025
Key risks
(†) Any references to companies are mentioned for illustrative purposes only and does not constitute a recommendation. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested.
Whilst L&G’s Asset Management business, where relevant, has integrated financially material Environmental, Social, and Governance (ESG) considerations into its stewardship practices and investment decision-making, funds that do not include specific ESG goals within their objectives might not pursue responsible investing goals.
Assumptions, opinions, and estimates are provided for illustrative purposes only. There is no guarantee that any forecasts made will come to pass.
