NEST Picks Private Market Managers

UK’s $9.9 billion DC plan expects first capital to deploy in October as it prepares to enter unlisted markets.

UK defined contribution fund NEST will have two fund managers running its private credit operations as it enters the private market.

Amundi will manage real estate debt and BlackRock will handle infrastructure debt through two comingled funds.

NEST plans to co-invest alongside both managers and will start deploying capital in October.

Chief Investment Officer Mark Fawcett said that setting up the fund’s private debt program is an organic evolution of the plan’s investment offering. “While setting up Nest Invest is an exciting development, it’s the natural next step for a scheme of our size,” he said. “We already have the internal expertise in Nest’s investment team to manage the additional responsibilities.”

NEST initial contract will run around £400-500 million between the two firms, the $9.9 billion organization said. Amundi and BlackRock beat out nearly 40 other firms that bid for the program. NEST said that the managers were selected for their innovation and cost-efficiency.

NEST was recently announced as a finalist for CIO’s 2019 Industry Innovation Awards in the “Defined Contribution Plan” category.


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