Nest commits £500m to US loans
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Master trust Nest is looking for candidates to manage £500m in direct lending, with a focus on the US corporate middle market. The tender closes on 21 February.
Chief investment officer Elizabeth Fernando said on LinkedIn: “We’re aiming to capitalise on the attractive yield premium that typically comes from this asset class and are inviting those who can deliver these kinds of investments to apply.”
The mandate will primarily target senior and unitranche private loans, which will finance primarily private equity-sponsored unlisted companies across sectors including healthcare, technology, consumer, and industrial.
Private markets head Stephen O'Neill said the mandate search aligns with Nest’s commitment to helping deliver strong and stable returns for scheme members.
He added: “We plan to initially commit approximately £500m to this mandate, with the expectation that the funds will be drawn gradually over the next three to four years. Additional contributions may be considered as market opportunities arise.”
Chief investment officer Elizabeth Fernando said on LinkedIn: “We’re aiming to capitalise on the attractive yield premium that typically comes from this asset class and are inviting those who can deliver these kinds of investments to apply.”
The mandate will primarily target senior and unitranche private loans, which will finance primarily private equity-sponsored unlisted companies across sectors including healthcare, technology, consumer, and industrial.
Private markets head Stephen O'Neill said the mandate search aligns with Nest’s commitment to helping deliver strong and stable returns for scheme members.
He added: “We plan to initially commit approximately £500m to this mandate, with the expectation that the funds will be drawn gradually over the next three to four years. Additional contributions may be considered as market opportunities arise.”
The £45.3bn fund has an ambition to have up to 30% of assets invested in private markets by 2030.
All documents are available on the master trust’s tendering platform.
All documents are available on the master trust’s tendering platform.
The tender by the UK’s largest DC master trust comes amid government efforts to channel pensions capital into UK private markets, by proposing to mandate DC consolidation.
