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USS buys majority stake in investment manager Venn
Universities Superannuation Scheme (USS) has bought a majority stake in Venn, the investment manager that funds build-to-rent and affordable housing, backed by UK government guarantees.
Universities Superannuation Scheme has bought a majority stake in Venn, the investment manager that funds build-to-rent and affordable housing, backed by UK government guarantees #UKhousingUSS, the sole corporate trustee of the Universities Superannuation Scheme pension fund, will acquire a majority interest in Venn, acting as a “long-term, patient capital provider”.
Under the deal, investment manager ESR will fully exit from Venn to focus on logistics real estate and data centres, while Venn’s management team will increase its ownership stake in the business.
The USS deal will enhance Venn’s capacity to deploy capital across the UK housing market, the organisations said.
It will also reinforce Venn’s mission to provide “scalable, institutional-quality financing solutions” to develop homes, unlock demand for homeownership and contribute to the long-term resilience of the UK housing market.
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Venn said its next phase of growth will be built on the burgeoning requirement for private capital investment in the residential sector; the increase in allocations from institutional investors for high-grade private market products; and Venn’s specialisation within the residential market.
Subject to regulatory approvals, the transaction is expected to complete in the second quarter of 2026.
Venn, founded in 2009, has assets under management and active mandates totalling over £11bn across various residential markets in the UK and Europe.
It operates two lending programmes on behalf of the UK government: the £3.5bn Private Rented Loan Guarantee Scheme and the £6bn Affordable Housing Loan Guarantee Scheme.
The investment manager currently manages over £10bn across four strategies in the UK. Two of its strategies support the development of new homes in the affordable housing and private rental sectors, while the other two focus on unlocking homeownership for households underserved by traditional mortgage products.
USS, established in 1974, is one of the largest pension schemes in the UK. As of March 2025, its total assets are around £76.8bn. It is already active in the UK affordable housing sector through its for-profit registered provider Sparrow Shared Ownership.
Gary McKenzie-Smith, managing partner at Venn, said: “Over the last 15 years, Venn has carefully put in place the foundations for a business that is able to channel institutional capital at scale into the residential sector.
“This includes diligent strategy selection and origination protocols, robust parameters in underwriting and risk management, and a well-constructed and scalable operating infrastructure.”
Eamon Ray, head of private credit at USS Investment Management, said: “This new partnership reflects USS’s support for the UK residential market, a sector that can deliver high-quality, long-duration, inflation-linked exposure, while also providing valuable housing options across the UK.
Mr Ray added: “We see Venn as a complementary strategic partner to grow our involvement in the UK residential market, following our launch of Sparrow Shared Ownership, a registered provider of more than 3,000 shared ownership homes across the UK, and the successful execution of Summerhouse, our securitisation of a portfolio of equity release mortgages.”
Earlier this year, Venn’s managing director Oriane Auzanneau told Inside Housing Living how government guarantees are reshaping housing finance and building investor confidence.
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