Key Takeaways
- • Nest, the U.K. defined contribution workplace pension scheme, has committed more than £2 billion to a private equity mandate managed by HarbourVest Partners, up from an initial £750 million when the firm was appointed in 2022.
- • The mandate invests through co-investments in about 60 privately held companies across 17 countries in North America, the U.K., Europe and Asia-Pacific, nine of which are U.K.-based across growth equity and buyout strategies.
- • Nest has more than £3 billion invested in private equity overall, about 5% of its £68.4 billion in assets under management as of June 30, with roughly 18% (£566 million) in U.K. private companies.
- • Nest CIO Elizabeth Fernando said private equity is a key component of the scheme's private markets strategy aimed at diversifying the portfolio for more than 14 million members.
Summary
Nest, one of the U.K.'s defined contribution workplace pension schemes, has committed more than £2 billion to a private equity mandate managed by HarbourVest Partners, according to a press release. The commitment has grown from an initial £750 million when HarbourVest was appointed in 2022.
The mandate invests through co-investments in about 60 privately held companies across 17 countries throughout North America, the U.K., Europe and Asia-Pacific. Nine of those companies are based in the U.K. and span growth equity and buyout strategies. Among the holdings named in the release are 9fin, a London-based financial intelligence platform for debt capital markets professionals that describes itself as AI-native and employs more than 600 people worldwide, and Citation, a Cheshire-based provider of compliance and certification services to more than 110,000 small and medium-sized businesses in the U.K., Canada and Australia. Nest said its investment in Citation sits alongside those of Hg and KKR. HarbourVest led a $170 million funding round in 9fin that valued the company at $1.3 billion, according to the statement.
Nest said it has more than £3 billion invested in private equity overall, equal to about 5% of its £68.4 billion in assets under management as of June 30. Roughly 18%, or £566 million, of that private equity allocation is in U.K. private companies.
Elizabeth Fernando, Nest's chief investment officer, said in the release that "Private equity is a key component of our private markets strategy." She added that the aim is to build a more diversified portfolio for the scheme's more than 14 million members, and that businesses such as 9fin and Citation need long-term capital from investors like pension schemes.
The mandate invests through co-investments in about 60 privately held companies across 17 countries throughout North America, the U.K., Europe and Asia-Pacific. Nine of those companies are based in the U.K. and span growth equity and buyout strategies. Among the holdings named in the release are 9fin, a London-based financial intelligence platform for debt capital markets professionals that describes itself as AI-native and employs more than 600 people worldwide, and Citation, a Cheshire-based provider of compliance and certification services to more than 110,000 small and medium-sized businesses in the U.K., Canada and Australia. Nest said its investment in Citation sits alongside those of Hg and KKR. HarbourVest led a $170 million funding round in 9fin that valued the company at $1.3 billion, according to the statement.
Nest said it has more than £3 billion invested in private equity overall, equal to about 5% of its £68.4 billion in assets under management as of June 30. Roughly 18%, or £566 million, of that private equity allocation is in U.K. private companies.
Elizabeth Fernando, Nest's chief investment officer, said in the release that "Private equity is a key component of our private markets strategy." She added that the aim is to build a more diversified portfolio for the scheme's more than 14 million members, and that businesses such as 9fin and Citation need long-term capital from investors like pension schemes.
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