Nest, the largest UK pension scheme by members, has become a 10% shareholder in asset manager IFM Investors (IFM) with the aim of boosting the pension fund’s private markets investments.
This deal means together Nest and IFM will look to capitalise on major UK private market investments and unlock new investment opportunities across the globe.
The arrangement is set to boost Nest’s ambition to diversify and increase its allocations to private market assets from 17% to 30% in the coming years.
Nest and IFM will develop investment strategies for the pension fund to pursue new private market investments that could provide greater returns to its more than 13 million UK members.
As parts of this, Nest’s ambition is to invest around £5bn through IFM by 2030.
Nest intends to invest in IFM’s infrastructure, debt, and private equity capabilities – with a key focus on new UK investment opportunities.
This includes looking to invest in real assets across the UK, building upon the existing UK assets held within IFM funds, including Arqiva, a British telecoms company, the M6 toll road, in addition to Manchester, Stansted, and East Midlands Airports.
As part of the arrangement Nest will become a 10% shareholder in IFM’s holding company – Industry Super Holdings – joining the existing 16 Australian superannuation funds who, collectively, ultimately own IFM.
Mark Fawcett (pictured), CEO of Nest Invest, said: “By joining forces with IFM we are taking a crucial step towards our goal of investing 30% of our assets under management into private markets by 2030.”
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