Nest has announced the appointment of HarbourVest Partners to help it continue its expansion into private equity investments. The agreement will see HarbourVest invest, in co-investment opportunities specifically tailored to meet the goals of the government-backed auto-enrolment provider.
The partnership is part of Nest’s ambition to invest at least £1.5bn in private equity by 2025, as well as its more long-term target of having 5% of its portfolio to be invested in private equity.
With a specific focus on growth and middle market deals, HarbourVest is expected to begin investing capital within the next few months.
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The deal marks the second private equity partnership Nest has struck, following its agreement with Schroders Capital in May.
Nest head of private markets Stephen O’Neill said: “During the procurement process, HarbourVest Partners impressed with their ability to unlock private equity deals around the world.
“They are keen to exercise their governance rights to help manage long-term risks and encourage sustainable business activities and they understand the importance of responsible investing and represent an excellent partner for Nest to work with.
“With two managers now in place, we are ready to integrate this important asset class into our investment strategy, allowing our members to benefit from the superior returns private equity typically achieves relative to other types of investments.”
HarvourVest managing director Craig MacDonald added: “We are delighted to be partnering with Nest on this new chapter in tis evolution as it opens up private equity to its pension savers.
“We worked hand-in-hand with the Nest team to develop a flexible and tailored solution that aligns with Nest’s needs and ambitions for its members.
“Together, we believe we are filling a much-needed gap in the market, providing access to the asset class for a broader base of UK pension savers.”
Source: Professionals Pensions
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