The National Employment Savings Trust (Nest), one of the largest workplace pension schemes is planning to boost its allocation to private equity investments in a bid to improve long-tern returns, according to a report by the Telegraph.
The report cites a senior executive as confirming that as much as a fifth of younger members’ pension pots will be invested in private businesses as part of the plan by the £31.5bn state-backed fund looks to take on more risk.
Writing in the Telegraph, Nest Chief Executive Officer Mark Fawcett said: “We plan to step up our investment into private markets over the coming years, including more money into unlisted equities. Our view is simple: we don’t want Nest members missing out on an asset class which is so highly sought after.”
Other major UK pensions funds including Aviva Plc, Legal & General Group Plc and M&G Plc have also outlined commitments to allocate more investments to unlisted businesses over the next decade.
