Nest awards £450m direct lending mandate amid private markets push

The open-ended structure of the mandate will see Nest deploy capital over “multiple years”, the defined contribution (DC) provider said in a statement. Nest aims to allocate as much as 30% of its assets to private markets by 2030.

Crescent Capital Group’s team will target lending to US-based middle market companies, Nest said, focusing on “non-cyclical businesses across various sectors including healthcare, technology, consumer, and industrial”.

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.”

Crescent manages $50bn (£37bn) in assets across a range of corporate credit strategies.

Christopher Wright, president of Crescent Capital Group, 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. We look forward to building a partnership that supports Nest’s mission for many years to come.”

Nest has sought to diversify its portfolio in recent months with a series of additions, including a push into sustainable timber via a mandate run by BTG Pactual Timberland Investment Group, as well as investing in UK private equity and infrastructure.

The master trust has also backed a £3bn aqueduct upgrade project via its investment partnership with GLIL, and is currently searching for an ethical equity fund manager to run a segregated mandate within its Ethical Fund.