Key Takeaways
- • Nest, the UK master trust with over 13 million members, plans to deploy £450m (€517m, $605m) into direct lending through an open-ended mandate with US specialist Crescent Capital Group, to be deployed over multiple years.
- • The mandate targets US-based middle-market companies in non-cyclical sectors including healthcare, technology, consumer and industrial businesses.
- • Nest aims to allocate as much as 30% of its assets to private markets by 2030, and the Crescent award is part of a broader push to diversify beyond public markets.
- • Crescent Capital Group manages $50bn (£37bn) across corporate credit strategies, and its president Christopher Wright described the partnership as aimed at stable income and downside protection.
Summary
Nest, the defined contribution master trust, plans to deploy £450m into direct lending through a new open-ended mandate with Los Angeles-headquartered Crescent Capital Group, according to a statement from Nest. Capital will be deployed over "multiple years" under the structure.
Crescent's team will lend to US-based middle-market companies, focusing on "non-cyclical businesses across various sectors including healthcare, technology, consumer, and industrial," Nest said. Crescent manages $50bn (£37bn) in assets across a range of corporate credit strategies.
Rachel Farrell, director of public and private markets at Nest Invest, said the investment "helps build a more diverse and resilient investment strategy that can support their savings through different market conditions." She added that broadening exposure to global credit markets requires managers with strong business models, well-resourced teams and differentiated expertise.
Christopher Wright, president of Crescent Capital Group, said the firm aims to deliver the stable income, downside protection and risk-adjusted returns that private credit can offer.
The award is part of a wider private markets build-out. Nest aims to allocate up to 30% of its assets to private markets by 2030 and has recently added a sustainable timber mandate run by BTG Pactual Timberland Investment Group, along with UK private equity and infrastructure investments. The master trust has also backed a £3bn aqueduct upgrade via its partnership with GLIL, and is searching for an ethical equity manager to run a segregated mandate within its Ethical Fund.
Crescent's team will lend to US-based middle-market companies, focusing on "non-cyclical businesses across various sectors including healthcare, technology, consumer, and industrial," Nest said. Crescent manages $50bn (£37bn) in assets across a range of corporate credit strategies.
Rachel Farrell, director of public and private markets at Nest Invest, said the investment "helps build a more diverse and resilient investment strategy that can support their savings through different market conditions." She added that broadening exposure to global credit markets requires managers with strong business models, well-resourced teams and differentiated expertise.
Christopher Wright, president of Crescent Capital Group, said the firm aims to deliver the stable income, downside protection and risk-adjusted returns that private credit can offer.
The award is part of a wider private markets build-out. Nest aims to allocate up to 30% of its assets to private markets by 2030 and has recently added a sustainable timber mandate run by BTG Pactual Timberland Investment Group, along with UK private equity and infrastructure investments. The master trust has also backed a £3bn aqueduct upgrade via its partnership with GLIL, and is searching for an ethical equity manager to run a segregated mandate within its Ethical Fund.
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