The UK’s government-backed Nest pension scheme has appointed BNP Paribas Asset Management (BNPP AM) to create a fund that will invest in private markets including infrastructure debt.
The French bank said in a press release on Thursday (17 October) that it will create an open-ended private credit fund initially targeting infrastructure and real estate debt as well as loans to small and medium UK and mid-market US businesses.
A spokesperson for Nest said in an emailed statement to Inframation that it also has a mandate with BlackRock to manage its global infrastructure debt investments and one with Amundi focused on real estate debt. It expects to invest around GBP 500m over the next year on the three mandates.
The new fund will provide Nest pension holders with access to investments that are less volatile and offer higher returns than public investments, BNPP AM UK chief executive Guy Davies and Nest chief investment officer Mark Fawcett (pictured) said in the press release.