Nest, the UK’s largest workplace pension scheme, is planning to invest up to £1bn in venture capital by 2030 as it increases members’ exposure to private markets, according to a report by the Financial Times.
The state-backed scheme has allocated an initial £200m to Schroders Capital, forming part of an existing £1.5bn private equity mandate with the firm. The capital will target middle- and late-stage venture opportunities.
Nest, which has 14 million members and receives around £700m in monthly contributions, is aiming to increase its private markets allocation from 19% to 30% of assets by 2030. As of May, private equity accounted for 5% of its £68bn in assets under management, with around 44% of its private assets exposure invested in the UK.
The move comes amid a wider push from UK ministers and City of London executives to increase pension fund investment in private markets, with the aim of supporting domestic growth companies while improving saver returns. Nest has also recently committed £450m to private credit loans to US companies through Crescent Capital.
