NEST has committed £200m (€230m) to high-growth companies through the creation of a dedicated venture capital (VC) sleeve with Schroders Capital.
The move builds on the £68bn master trust’s existing private markets strategy and investment in high-growth companies. NEST said the new VC sleeve will formalise and scale its approach, providing access to companies backed by Schroders Capital.
Initially, the scheme will allocate £200m on behalf of its 14m members, incorporating existing venture investments and providing fresh capital for new late-stage VC opportunities.
NEST expects the allocation to grow over time and reach £1bn by 2030, with a particular focus on UK-based unlisted companies, subject to sufficient availability of suitable investment opportunities.
The commitment forms part of NEST’s wider ambition to increase private markets exposure to 30% by 2030.
Mark Fawcett, CEO of Nest Invest, said it was well positioned to support ambitious private companies.
He said: “Our members save with us over decades, which allows us to invest patiently and back innovation through different stages of growth.”
Fawcett added that NEST is particularly attracted to opportunities in the UK business sector, where support for UK innovation can help drive job creation and economic growth.
Tim Creed, head of private equity investments at Schroders Capital, said the partnership combines NEST’s long-term investment horizon with Schroders Capital’s private markets expertise to support high-growth businesses.
He added that the UK has a significant opportunity to channel more pension fund capital into venture investing, helping savers access growth opportunities while supporting the next generation of scale-up companies and retaining more value within the domestic economy.
