The move comes as the UK is set to hold its first Regional Investment Summit tomorrow (21 October) – a summit where some 20 of the UK’s largest pension providers and insurers, including Nest, will join forces with the government to launch the ‘Sterling 20′ initiative.
Nest became the first non-Australian owner of IFM, a pension fund- owned asset manager, at the beginning of this year, taking a 10% stake in the organisation and pledging to deploy around £5bn through IFM by 2030.
The investments announced today include £40m to support the rollout of rural fibre broadband infrastructure across Scotland and the North of England, and a further £45m backing an energy-from-waste and decarbonisation business in the Midlands and North of England.
Nest said these projects target essential areas of the UK economy, helping to create jobs in the local community, drive decarbonisation, support the government’s regional growth agenda, and strengthen the country’s digital connectivity and energy resilience for the future.
It added these investments also support Nest’s ambition to diversify and increase its allocation to private market assets from around 18% to 30% in the coming years.
Commenting on the investment, Nest chief investment officer Liz Fernando said: “At Nest, we’re committed to delivering strong, consistent returns for our members while supporting UK economic growth – investing in UK private markets is a key part of achieving that.
“Through our strategic partnership with IFM, we’re backing high-quality infrastructure projects at home. From expanding high-speed broadband to rural homes and businesses to supporting waste-to-energy facilities, these are enticing investments that will also help create jobs, apprenticeships, and new regional offices, helping to power growth across regions.
She added: “With around £4bn already committed to UK private markets and an ambition to reach £12bn by 2030, Nest is investing in the future of UK. As an early supporter of the Mansion House Accord, we’re here to help create lasting opportunities that benefit our members and the communities they live in.”
IFM Investors head of debt investment EMEA David Cooper added: “We’re proud to support Nest in unlocking the income and risk-adjusted return potential of infrastructure debt for its members.
“We believe investing in infrastructure is critical to powering the digital economy, cutting carbon emissions, and driving the energy transition. Private debt capital is a key enabler — offering relative value for investors and, most importantly, their members.”