UBS concern over private markets push by manager of $1bn sustainable finance fund

August 24, 2026 - 11:29

Tensions between UBS and the London-based asset manager Record have reportedly cooled, though the two firms still work together on a major sustainability mandate. The friction stems from Record's recent push into private markets, a move that has raised eyebrows at the Swiss banking giant, according to people familiar with the matter.

Record, which oversees roughly $1 billion in a sustainable finance strategy, has been expanding beyond its traditional currency and broader public market expertise. That expansion into less liquid assets has not sat well with UBS, which acts as a key distribution partner for the fund. Insiders say the relationship has soured in recent months, with UBS expressing concern about the risk profile and valuation complexity that private assets bring to a fund marketed on transparency and environmental impact.

Despite the strain, the partnership remains intact, and UBS has not pulled its support. The UK-based firm still relies on UBS for client access and distribution, particularly among institutional investors in Europe and Asia. Neither company has made a public statement about the disagreement, but the friction highlights a broader industry tension: as sustainable funds chase higher returns, they are increasingly tempted by private equity and infrastructure deals that are harder to price and exit.

For now, the $1 billion fund continues to operate, and both sides are said to be working to smooth over differences. But the episode signals that even well-established banking relationships can crack when investment strategies diverge. Whether Record will slow its private markets push or UBS will simply learn to live with it remains an open question.