Nest, the largest workplace pension scheme in the UK by membership, announced a £200 million (USD$269 million) commitment to support next-generation climate solutions through a partnership with investment manager IFM Investors.
IFM’s next generation infrastructure credit strategy focuses on international lending opportunities across developed markets, supported by a pipeline of opportunities in the U.K. The strategy targets growth-stage companies with proven technologies and demonstrated commercial demand that have progressed beyond early-stage risk but remain underserved by traditional infrastructure debt markets, according to the pension scheme.
Nest said that the initiative is designed to support innovative projects and companies that are believed to be well positioned to benefit from the transition to a lower-carbon economy.
Rachel Farrell, Director of Public and Private Markets at Nest Invest said:
“The globally-focussed strategy aims to back companies, asset-backed debt, across power and energy, sustainable transportation, digital circular economy and industrial innovation sectors, backing innovators that deliver measurable, low-carbon outcomes across the real economy.”
The new investment follows the acquisition by Nest last year of a 10% stake in IFM. Nest said that it intends to invest £5bn through IFM by 2030.
Rich Randall, Global Head of Debt Investments at IFM said:
“Building on IFM’s global infrastructure debt platform and decades of experience financing essential assets, this mandate expands our focus to innovative infrastructure and industrial technologies that support economic resilience, energy security and supply chain strength.”
