NEST kicks off £5bn private markets drive with £85m UK infrastructure deals

UK workplace pension scheme NEST has made its first UK investments through IFM Investors, marking the start of a five-year plan to deploy £5bn (€5.8bn) into private markets.

The £53bn pension scheme’s new investments include a £40m commitment to expand rural fibre broadband infrastructure across Scotland and the North of England, and a £45m commitment to an energy-from-waste and decarbonisation business in the Midlands and North of England.

The UK investments form part of NEST’s strategy to increase its private market allocation from approximately 18% to 30% in the years ahead.

This follows NEST’s earlier actions, including becoming a 10% shareholder in IFM’s holding company, Industry Super Holdings, and providing €530m in seed capital to a new European infrastructure debt fund managed by IFM Investors.

Liz Fernando, CIO at NEST, said: “Through our strategic partnership with IFM, we’re backing high-quality infrastructure projects at home. From expanding high-speed broadband to rural homes and businesses to supporting waste-to-energy facilities, these are enticing investments that will also help create jobs, apprenticeships, and new regional offices, helping to power growth across regions.

“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.”

David Cooper, head of debt investment EMEA for IFM Investors, said: “We believe investing in infrastructure is critical to powering the digital economy, cutting carbon emissions, and driving the energy transition. Private debt capital is a key enabler — offering relative value for investors and, most importantly, their members.

“IFM exists to invest, protect, and grow the long-term retirement savings of working people. By partnering with organisations like Nest, we’re working to deliver better retirement outcomes for millions of workers across the UK.”

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