Scottish Widows and Aberdeen Allocate UK Workplace Pension Capital to Oxford Quantum Circuits and Quantum Motion via LTAF

Introduction

UK workplace pension providers are increasingly looking beyond traditional equities to support high‑growth, capital‑intensive sectors. In a pioneering move, Scottish Widows and Aberdeen Investments have deployed defined‑contribution (DC) retirement capital into the CG Scottish Widows Growth Long‑Term Asset Fund (LTAF). Managed by IP Group, the fund’s first quantum‑computing allocations target Oxford Quantum Circuits (OQC) and Quantum Motion, signalling a domestic conduit for deep‑tech venture funding.

A new capital conduit for UK quantum hardware

The CG Scottish Widows Growth LTAF is an FCA‑authorized vehicle that allows pension savers to hold illiquid, growth‑stage equity positions within their default retirement schemes. By routing a portion of the roughly £300 billion of assets under administration (AUA) managed by Scottish Widows into private‑equity‑style investments, the fund creates a patient capital pool for UK hardware spin‑outs that traditionally relied on foreign investors.

• Oxford Quantum Circuits – develops superconducting qubits built around a proprietary 3D coaxial “Coaxmon” wiring architecture, aimed at reducing cross‑talk and improving scalability in data‑center‑grade racks.
• Quantum Motion – focuses on silicon spin‑qubit processors that can be fabricated in standard 300 mm CMOS foundries, leveraging the existing semiconductor supply chain to accelerate qubit density and yield.

Both companies represent distinct physical approaches to quantum hardware, and the LTAF allocation provides the Series B‑plus funding needed to move from prototype to pilot production.

Complementary deep‑tech bets

The inaugural tranche does not stop at quantum hardware. It also includes:

• Nyobolt – a battery‑technology start‑up working on ultra‑fast charging solutions.
• Genomics Limited – a firm advancing genomic‑medicine platforms.

By bundling these investments, the LTAF spreads risk across multiple high‑impact sectors while maintaining a focus on UK‑based, capital‑intensive innovation.

Implications for investors and the UK ecosystem

Embedding venture‑stage equity in DC pension schemes offers several benefits:

1. Diversified retirement portfolios – Savers gain exposure to frontier technologies that could deliver outsized long‑term returns.
2. Domestic capital retention – UK quantum firms receive growth funding without diluting ownership to overseas investors, supporting a sovereign tech pipeline.
3. Patient capital alignment – Pension horizons naturally match the long development cycles of quantum hardware, reducing pressure for short‑term exits.

For the broader quantum ecosystem, the move signals confidence from mainstream financial institutions in the commercial viability of UK quantum hardware. It may encourage further institutional participation, stimulate talent retention, and accelerate the transition from research labs to market‑ready products.

Closing thoughts

The partnership between Scottish Widows, Aberdeen Investments, and IP Group marks a notable shift in how retirement capital can be mobilised for deep‑tech growth. By backing OQC and Quantum Motion, the LTAF not only provides essential funding but also validates the UK’s strategic focus on quantum hardware. As the fund matures, its performance will offer valuable insights into the role of pension‑linked venture capital in nurturing next‑generation technologies.