The National Employment Savings Trust of the U.K. announced Wednesday the launch of a £220 million ($267 million) venture capital sleeve that will be managed by Schroders Capital, as part of the pension fund’s expanded commitment to private markets.
The sleeve will invest in late-stage venture capital opportunities that are sourced and executed by Schroders PLC, which has invested in companies such as autonomous driving software company Wayve Technologies Ltd. and artificial intelligence video creation platform Synthesia Ltd., both of which are in the Nest portfolio.
Nest, which manages £68 billion in assets, anticipates growing its private markets allocations from a 19% target to 30% by 2030, with this specific venture capital sleeve reaching £1 billion in assets by 2030. More than 99% of Nest members have invested through the provider’s retirement date funds, which include allocations to private assets such as real estate, private credit, private equity and timberland.
“As Nest has grown, we have continued to evolve our investment approach, opening up new investment opportunities for our members,” said Mark Fawcett, Nest Invest’s CEO, in a statement. “We are delighted to expand this approach further into venture capital, providing injections of cash that growing businesses need to scale.”
The venture capital platform will maintain a strong focus on U.K.-based companies: The pension fund noted that “expanding its VC strategy forms part of Nest’s broader ambition to enhance long-term returns through greater diversification while also supporting U.K. innovation.”
Nest’s plans to expand its exposure to private markets for its defined contribution members comes as DC plans in the U.S. are starting to consider how to add alternatives to their investment menus, encouraged by President Donald Trump.
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Tags: National Employment Savings Trust (NEST), Schroders Capital, Venture Capital