Nest hands Crescent £450m for new mandate &#8211; Alternative Credit Investor

Nest, the UK’s largest workplace pension scheme, has awarded alternative credit investment firm Crescent Capital an initial commitment of £450m to manage a new open-ended mandate investing in secured, first-priority loans to private companies.

As part of the agreement, Nest’s initial commitment will be deployed over multiple years to Crescent to further strengthen its exposure to private direct lending. Crescent manages $50bn (£37 billion) in assets as of 31 December 2025 and focuses exclusively on corporate credit.

The investment supports Nest’s long-term strategy to diversify its portfolio through well-structured private credit opportunities and its ambition to allocate 30 per cent of its assets under management (AUM) to private markets by 2030.

Nest is a signatory of the voluntary Mansion House Accord, which saw 17 UK workplace pension providers agree to invest at least 10 per cent of their defined contribution default funds into private markets by the end of the decade.

The partnership will provide Nest with access to the US private corporate lending space, the world’s deepest single private debt marke.

Under the evergreen mandate, Crescent will originate secured, first-priority loans directly to US middle market companies, with a focus on non-cyclical businesses across various sectors including healthcare, technology, consumer and industrial.

Crescent is also focused on lending to companies that generate strong, recurring revenue and high free cash flow.

“Our priority is always to deliver positive, long-term outcomes for our members. This investment helps build a more diverse and resilient investment strategy that can support their savings through different market conditions,” said Rachel Farrell, director of public and private markets at Nest Invest.

“As we broaden our exposure to global credit markets, it is essential that we do so through managers with strong business models, well-resourced teams and differentiated investment expertise.

“We are therefore pleased to appoint Crescent, whose extensive sourcing capabilities, disciplined underwriting, focus on credit quality and strong track record across market cycles make them a trusted partner as we continue to build and diversify our portfolio.”

“We are committed to being responsible stewards of capital on behalf of Nest’s more than 13 million members and over half a million employers and aim to deliver the stable income, downside protection, and attractive risk-adjusted returns that private credit can offer,” added Christopher Wright, president of Crescent Capital.