NEST, the UK workplace pension fund, has appointed Crescent Capital Group to manage an open-ended mandate investing in secured, first-priority loans to private companies.
As part of the agreement, NEST has made an initial commitment of £450m (€517m) to be deployed over multiple years to Crescent, to further strengthen its exposure to private direct lending.
The investment supports NEST’s long-term strategy to diversify its portfolio through well-structured private credit opportunities and its ambition to allocate 30% of its AUM to private markets by 2030.
Under the evergreen mandate, Crescent Capital will originate secured, first-priority loans directly to US middle market companies, with a focus on non-cyclical businesses across various sectors, including healthcare, technology, consumer and industrial.
In addition, Crescent Capital is focused on lending to companies that generate strong, recurring revenue and high free cash flow.
Rachel Farrell, director of public and private markets at NEST Invest, said: “Our priority is always to deliver positive, long-term outcomes for our members. This investment helps build a more diverse and resilient investment strategy that can support their savings through different market conditions.
“As we broaden our exposure to global credit markets, it is essential that we do so through managers with strong business models, well-resourced teams and differentiated investment expertise.”
Christopher Wright, president of Crescent Capital, said: “We are committed to being responsible stewards of capital on behalf of NEST’s more than 13 million members and over half a million employers and aim to deliver the stable income, downside protection, and attractive risk-adjusted returns that private credit can offer.”
