Nest has committed £200m to next-generation climate technologies through a partnership with IFM Investors.

The pension scheme’s investment in the infrastructure specialist’s NextGen Strategy aims to support innovative projects and companies that are expected to benefit from the transition to a lower-carbon economy.

Next generation infrastructure credit is a growth credit strategy focused on international lending opportunities across developed markets, complemented by a ‘robust’ UK pipeline.

It aims to support growth-stage industrial and infrastructure-oriented businesses requiring scale-up capital, including venture-backed companies.

The strategy is targeting established technologies with a demonstrated commercial need that have progressed beyond early-stage risk but remain ‘underserved’ by traditional infrastructure debt.

This investment marks Nest’s latest involvement since it became the first international owner of IFM last year, joining 15 Australian superannuation funds, and it plans to invest £5bn through IFM by 2030.

“This investment represents a compelling opportunity to generate returns for our members by tapping into some of the most exciting and innovative climate technologies in the world, including those right here in the UK,” commented Nest Invest director of public and private markets, Rachel Farrell.

“It is made possible through our strategic partnership with IFM, which enables us to seed new strategies like this and help unlock wider capital flows from other investors.

“We’re here to support entrepreneurs in accessing the capital they need to scale their ideas into real-world solutions. Alongside financial returns, this investment is also putting members’ money to work in ways that move the dial on climate actions — a clear ‘win win’ for both our members and the wider market.”

IFM global head of debt investments, Rich Randall, added: “We’re pleased to partner with Nest on this next generation infrastructure credit strategy, reflecting our long-standing relationship and shared conviction in the role long term capital can play in infrastructure markets.

“Building on IFM’s global infrastructure debt platform and decades of experience financing essential assets, this mandate expands our focus to innovative infrastructure and industrial technologies that support economic resilience, energy security and supply chain strength.

“As a pension fund owned institution, IFM is focused on delivering strong long-term outcomes for working people’s retirement savings through investments with resilience, durability and lasting value.

“Through this partnership, we aim to provide flexible growth capital to high quality businesses helping drive the transformation of critical infrastructure systems, while delivering attractive risk adjusted returns for investors.”

---