Private investment of UK Nest

... Credit :
Shadrach   in Finance & Money

Last updated: 09 January 2020, 08:07 GMT

The UK pension scheme managing investments has appointed BNP Paribas Asset Management (BNPP AM) to manage a diversified private credit portfolio.

The asset manager is to create an open-ended diversified private credit fund it initially consists of exposing to infrastructure debt, commercial real estate debt, European mid-market loans, UK small and medium-sized enterprises loans, and US mid-market loans.

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Nest is a defined contribution (DC) workplace pension scheme created as part of the UK government’s 2008 workplace pensions reforms to facilitate auto-enrolment and has £7.5 billion of assets.

The chief investment officer of Nest, Mark Fawcett said: “Nest’s move into private credit is an important step in developing our investment strategy and helping to deliver a strong risk-adjusted returns we want for our members.”

BNPP AM said the mandate would be a collaboration between BNP Paribas’ corporate and institutional banking’s US leveraged finance group, BNPP AM’s multi-asset, quantitative and solutions unit, and the private debt and real assets division.