UK pension fund Nest has invested £200m in climate-focused infrastructure debt through a partnership with IFM Investors, the $177bn (£131.4bn) investment manager.
The £100bn defined contribution (DC) pension scheme will invest the capital in “next generation infrastructure credit”, focused on lending across developed markets.
The financing will support growth-stage industrial and infrastructure businesses, including venture-backed companies developing proven technologies that have moved beyond the early-stage phase but lack access to capital. The investments will focus on supporting the transition to a lower-carbon economy, Nest said.
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“We’re here to support entrepreneurs in accessing the capital they need to scale their ideas into real-world solutions,” said Rachel Farrell, director of public and private markets at Nest Invest. “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.”
The investment follows Nest becoming the first international owner of IFM last year, joining 15 Australian superannuation funds. The pension fund plans to invest £5bn through IFM by 2030.
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It also forms part of Nest’s strategy to increase its allocation to private markets from around 18 per cent to 30 per cent over the coming years.
“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,” added Rich Randall, global head of debt investments at IFM.
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