UK universities: A nexus for Private Market investment

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