Nest has continued to increase its commitment to private equity and UK-based investments, completing its first UK investment with IFM Investors and providing Schroders Capital with a further £500m to be invested through its private equity mandate.

The allocation to Schroders Capital builds on the partnership between the two organisations, bringing Nest’s total committed capital to Schroders Capital’s private equity strategy to £1.5bn.

The bespoke fund is designed to invest in both established and young businesses at the forefront of innovation, in growth sectors such as artificial intelligence, healthcare, pharmaceuticals and technology across North America, Asia and Europe, including the UK.

Across its portfolio, Nest has around £2bn directly invested in unlisted equity, of which nearly all is invested through its default funds and around 18 per cent (£381m) is invested in UK companies.

The group's focus on UK investments has also been seen more widely, as this news comes the same day as the announcement that Nest marked a key milestone in its partnership with global infrastructure specialist, IFM Investors, completing their first UK investments together.

The investments are located in the UK, and include £40m to support the rollout of rural fibre broadband infrastructure across Scotland and the North of England, and a further £45m backing an Energy-from-Waste and decarbonisation business in the Midlands and North of England.  

This also builds on a renewed focus on UK investments, with the Regional Investment Summit in Birmingham set to see the launch of the Sterling 20, an investor-led initiative designed to channel savings into key infrastructure and fast-growing businesses in the UK.

This is in line with Nest’s ambition to diversify and increase its allocation to private market assets from around 18 per cent to 30 per cent in the coming years, and is also aligned with the Mansion House Accord, which calls on defined contribution (DC) pension providers to allocate at least 5 per cent of their portfolios to UK private markets.

Commenting on the investment, Nest chief investment officer, Liz Fernando, said: “At Nest, we’re committed to delivering strong, consistent returns for our members while supporting UK economic growth – investing in UK private markets is a key part of achieving that.

“With around £4bn already committed to UK private markets and an ambition to reach £12bn by 2030, Nest is investing in the future of UK. As an early supporter of the Mansion House Accord, we’re here to help create lasting opportunities that benefit our members and the communities they live in.” 

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