Workplace pension scheme Nest has committed more than £2bn to a private equity mandate managed by global asset manager HarbourVest.
The allocation has grown from an initial £750m when HarbourVest took on the mandate in 2022. The strategy provides Nest’s members with exposure to more than 60 private companies across 17 countries, including North America, Europe, Asia-Pacific and the UK.
HarbourVest has backed nine domestic businesses through the mandate across growth equity and buyout transactions. Portfolio companies include London-based financial intelligence group 9fin and Cheshire-headquartered compliance services provider Citation, which supports 110,000 businesses across the UK, Canada and Australia.
The mandate forms part of Nest’s broader private equity exposure. As of 30 June, the pension scheme held roughly 5% of its £68.4bn AUM in private equity, with £566m – or about 18% of that allocation – directed into British companies.
Elizabeth Fernando, chief investment officer of Nest, said: “Private equity is a key component of our private markets strategy to build a more diversified portfolio and deliver strong risk-adjusted returns for our more than 14 million members over the long term. Since 2022, we have steadily increased our commitments to this private equity mandate managed by HarbourVest, giving our members access to investment opportunities beyond public markets so they can benefit from a diversified portfolio of private assets.
“We are pleased to see the mandate investing in innovative UK-founded and UK-based businesses, including 9fin and Citation, alongside opportunities around the world. These businesses require long-term capital from investors such as pension schemes to support their continued growth. As they scale, we can share in the value they create and the returns they generate for our members.”
Craig MacDonald, managing director of HarbourVest, added: “Our focus is on finding the most compelling opportunities for Nest’s members wherever they are. Against that global backdrop, the UK continues to stand out as an attractive market, with high-quality businesses and strong potential for long-term value creation. Our investments here demonstrate how UK businesses can form an important part of a globally diversified private equity portfolio.”
