Marvin OnumonuNest has put €530m (£450) into a new infrastructure debt fund, which is its first big investment since becoming an owner of IFM Investors.
Nest is now the first international owner of IFM, joining 15 Australian super funds.
The two groups will be working together on investment strategies focused on private market opportunities in the UK and Europe.
The new fund is set to boost investment in private markets, including UK assets like fibre, wind power, waste to energy, bus, and rail infrastructure.
Additionally, Nest is looking to grow its allocation to private markets from 17% to 30% of assets under management by 2030.
Nest plans to invest £5bn in private markets through IFM by 2030.
This is the first fund under the partnership and is part of Nest’s goal to nearly double its private markets investments.
The fund will focus on sub-investment grade infrastructure, aiming to provide better risk-adjusted returns for Nest’s 13 million UK members.
This commitment also lines up with Nest signing the Mansion House Accord.
Minister for Pensions Torsten Bell said: “I welcome the steps Nest, and the wider pensions industry, are taking to invest in more productive assets, from growing companies to infrastructure.
“This demonstrates the real appetite behind pension funds signing up to the Mansion House Accord and the positive outlook on the UK private markets.
“Working together, government and industry will deliver the investment to drive future prosperity, supporting better outcomes for savers and faster growth for Britain.”
Liz Fernando, chief investment officer at Nest, said: “Our members’ interests are at the heart of Nest’s investment strategy.
“Seeding this global infrastructure debt fund provides our members with access to diversified, world-class investment opportunities, and investments back in their communities and the infrastructure they use.
“We know the importance of investing in the UK, and that’s why we have signed up to initiatives like the Mansion House Accord.”
Fernando added: “This new IFM fund further shows our commitment to supporting the UK economy and gives a significant boost to our ambition to almost double our assets under management (AUM) into private markets to 30% by 2030.
“We’re pleased to have taken this exciting first step with IFM, one of the world’s leading global infrastructure investment managers.
“We came together to develop sophisticated investment strategies like this one, and we look forward to co-creating more opportunities on behalf of our members.”
David Cooper, head of debt investments in EMEA at IFM Investors, said: “IFM exists to invest, protect, and grow the long-term retirement savings of working people, and we’re proud to support Nest in unlocking the income and risk-adjusted return potential of infrastructure debt for its 13 million members.
“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 strong relative value for investors and, most importantly, their members.”
Cooper added: “By partnering with organisations like Nest, IFM is working to deliver better retirement incomes for workers across the UK.”
