LONDON, Oct 25 Reuters Britain will not force pension funds to consolidate or invest in highgrowth companies, but there must be change in the sector to give pension holders better longterm returns, finance minister Jeremy Hunt said on Wednesday.

Hunt launched the Mansion House Compact in July to help channel cash from direct contribution pension funds into unlisted companies to boost Britain39;s economic growth.

The government wants to persuade pension schemes to invest some of their funds in infrastructure as well as startups and green technology.

Ten companies have now voluntarily committed to invest 5 of their pension funds, or about 50 billion pounds in total, in unlisted companies by 2030.

In addition, consolidation of pension funds is seen as key to giving them scale and expertise to invest in growth companies without being overly exposed to risky investments.

I think we have got too many pension funds in this country, and I do want to see an industry where we end up with fewer, larger funds, Hunt told an event to take stock of the initiative. He said he wanted to see larger funds with the confidence to invest in growth companies.

I39;m not thinking we should mandate how people do that. I want to give people options … but to make it clear that no change is not an option, Hunt said.

Insurance broker Aon became the tenth member of the compact on Wednesday.

The British Private Equity Venture Capital Association BVCA also announced that 20 firms will help…