Key Takeaways
- • Nest, the £53bn defined contribution master trust, invested £500m with Schroders Capital, bringing the asset manager's total private equity mandate for Nest to £1.5bn.
- • Nest has begun deploying capital into a global infrastructure debt fund run by IFM Investors, seeded with around £500m this year, with the first two investments in UK companies.
- • Nest plans to invest approximately £5bn through IFM by 2030, following its acquisition of a 10% stake in IFM earlier in 2025.
- • Nest aims to lift its private market allocation from around 18% to 30% of assets under management by 2030, having invested around £2bn in private equity so far, of which about £381m is UK-based.
- • The announcements coincide with Nest's support for the government's 'Sterling 20' initiative ahead of Chancellor Rachel Reeves' Regional Investment Summit on 21 October.
Summary
Nest, the £53bn defined contribution master trust, has announced new UK investments to coincide with its support of the government's 'Sterling 20' initiative. The announcements come ahead of the Regional Investment Summit hosted by Chancellor Rachel Reeves on 21 October, at which a group of 20 leading institutional investors, including pension funds and insurers, has been announced as leading allocations to the UK. The moves build on the Mansion House Accord from earlier this year, according to Pensions Expert.
In private equity, Nest has invested £500m with Schroders Capital, bringing the asset manager's total mandate for the master trust to £1.5bn. Schroders was first appointed to run Nest's private equity investments in 2022. The expanded mandate targets established and young businesses in growth sectors such as artificial intelligence, healthcare, pharmaceuticals and technology, with allocations across the UK, North America, Asia and Europe, the asset manager said in a statement. Nest also disclosed a dedicated venture capital sleeve with Schroders Capital, committing £200m to high-growth companies, according to publisher reporting.
In infrastructure, Nest has begun deploying capital into a global infrastructure debt fund run by IFM Investors, which it seeded this year with around £500m. The first two investments are in UK companies: a broadband provider improving rural internet access in Scotland and northern England, and an 'energy from waste' company with locations in the Midlands and north of England. Nest acquired a 10% stake in IFM earlier this year and plans to invest approximately £5bn through IFM by 2030. IFM is co-owned by Australian pension funds.
Nest Invest's director of public and private markets, Rachel Farrell, said private equity deals offer exciting opportunities for members and are no longer out of reach of the average UK worker. Chief investment officer Liz Fernando said Nest has around £4bn committed to UK private markets and an ambition to reach £12bn by 2030. Tim Creed, head of private equity investments at Schroders Capital, said UK pensions are increasingly recognising the sector's potential to drive value for savers, businesses and the broader economy. Nest aims to raise its private market allocation from around 18% of its portfolio to 30% over the next few years.
In private equity, Nest has invested £500m with Schroders Capital, bringing the asset manager's total mandate for the master trust to £1.5bn. Schroders was first appointed to run Nest's private equity investments in 2022. The expanded mandate targets established and young businesses in growth sectors such as artificial intelligence, healthcare, pharmaceuticals and technology, with allocations across the UK, North America, Asia and Europe, the asset manager said in a statement. Nest also disclosed a dedicated venture capital sleeve with Schroders Capital, committing £200m to high-growth companies, according to publisher reporting.
In infrastructure, Nest has begun deploying capital into a global infrastructure debt fund run by IFM Investors, which it seeded this year with around £500m. The first two investments are in UK companies: a broadband provider improving rural internet access in Scotland and northern England, and an 'energy from waste' company with locations in the Midlands and north of England. Nest acquired a 10% stake in IFM earlier this year and plans to invest approximately £5bn through IFM by 2030. IFM is co-owned by Australian pension funds.
Nest Invest's director of public and private markets, Rachel Farrell, said private equity deals offer exciting opportunities for members and are no longer out of reach of the average UK worker. Chief investment officer Liz Fernando said Nest has around £4bn committed to UK private markets and an ambition to reach £12bn by 2030. Tim Creed, head of private equity investments at Schroders Capital, said UK pensions are increasingly recognising the sector's potential to drive value for savers, businesses and the broader economy. Nest aims to raise its private market allocation from around 18% of its portfolio to 30% over the next few years.
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