The National Employment Savings Trust of the U.K. announced Tuesday it will take a 10% stake in Industry Super Holdings, the parent company of IFM Investors, an asset management firm founded and owned by Australian pension funds.
Nest, the largest pension fund in the U.K. by members, noted in a press release that the pension fund will primarily invest in IFM’s alternate asset investments.
As part of the strategic partnership, Nest plans to invest in IFM’s infrastructure, debt and private equity strategies and increase its allocation to private markets to 30%, up from 17% today.
“Our new partnership with IFM demonstrates our ongoing commitment to using every tool in our toolbox to boost our members’ risk-adjusted returns,” said Nest Chair Brendan McCafferty in a statement. “Together with IFM, we’ll be able to further enhance our sophisticated investment options for everyday UK pension savers, aiming to help them build a more secure retirement.”
Nest, a public corporation founded in 2008, manages 45.3 billion pounds ($56.19 billion) in assets for 13.7 million members in its defined contribution pension; approximately one in three workers in the U.K. is expected to be a member of Nest by the end of the decade. U.K. pension regulations require employers to automatically enroll most workers into a pension plan.
IFM is currently owned by 16 Australian superannuation funds, which collectively manage 580 billion pounds ($724 billion), according to the announcement. Nest also announced its intention to invest 5 billion pounds by 2030 through IFM in private market investments in the U.K. and worldwide. IFM had $107 billion in assets under management at the end of 2024 and 13 offices around the world, including one in London.
“Nest will support IFM’s further expansion into new investment opportunities and markets across the globe, bringing UK expertise into IFM’s ownership group, as we seek to give pension fund members greater access to global markets that have the potential to deliver risk-adjusted returns for their retirement,” said IFM Investors CEO David Neal in a statement.
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Tags: Alternatives, Brendan McCafferty, David Neal, IFM, National Employment Savings Trust (NEST), Pensions