The industry superannuation fund-owned global private markets manager has finalised a landmark partnership with a UK pension fund.
UK pension fund, Nest, has officially become a 10 per cent shareholder in IFM Investors, supporting the latter’s expansion into global markets and bringing UK expertise into its ownership group.
According to IFM, Nest is now the investment manager’s first overseas investor, alongside 15 local super funds.
It was first announced in February that IFM and Nest had entered into a binding agreement that would see the pension fund take a 10 per cent ownership stake in IFM parent company Industry Super Holdings and commit to significant ongoing investment.
Notably, Nest is aiming to invest £5 billion through IFM across infrastructure, debt, and private equity by 2030, targeting, in particular, UK private market investments.
“We are delighted to welcome Nest. This is a significant milestone in IFM’s history – and it’s a reflection of the shared purpose and values of IFM, our broader owners, and Nest – which is to invest, protect and grow the long-term retirement savings of working people,” IFM’s CEO David Neal said on Monday.
“We believe this alliance will support IFM’s further expansion into new investment opportunities and markets across the world, especially in the UK, and give Australian workers greater access to global markets that have the potential to deliver risk-adjusted returns for their retirement.”
Nest CEO Mark Fawcett said: “We’re proud that Nest has officially joined forces with IFM – one of the world’s leading infrastructure managers born out of Australia’s globally recognised superannuation sector.
“As one of the largest pension schemes in the UK, with over a third of the workforce saving with us, we continually seek out global best practice to strengthen our investment approach.”
According to Fawcett, Australia has “set the benchmark” for infrastructure investing.
“We’re excited to tap into IFM’s capabilities while bringing our own scale, ambition, and innovation to the partnership,” Fawcett said.
“Together, we’ll drive stronger, more resilient long-term returns that benefit millions of working people on both sides of the globe.”
This week, Nest made headlines alongside 16 other British pension providers by committing to allocate at least 10 per cent of their defined contribution (DC) default funds to private markets by 2030, with half of that earmarked for investments in the UK.
The Mansion House Accord, according to media reports, will see its signatories make greater investments in key areas of focus for the UK government, including property and major infrastructure projects.
