Nest mandates HarbourVest for PE investing

Harriet Matthews
19 July 2022

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UK-based defined contribution workplace pension scheme Nest (National Employment Savings Trust) has mandated HarbourVest to make investments in private equity, marking the pension scheme’s second mandate to the asset class.

The mandate is part of Nest’s plan to have invested GBP 1.5bn in private equity by early 2025, with the long-term aim of having around 5% of its portfolio invested in PE.

The HarbourVest fund mandate will be dedicate to a pro-rata allocation of co-investment opportunities, alongside HarbourVest Partners’ other co-investment accounts, according to a statement. The mandate will focus on growth and mid-market deals.

Nest announced in May 2022 that it had selected Schroders Capital as a manager for its private equity investments, marking its entry into the asset class, as reported.

For the Schroders mandate, Nest expects the GP to deploy around GBP 250m per year from its allocation, corresponding to GBP 25m-GBP 75m per year and around four to five deals per year, as reported.

The HarbourVest mandate is the last of the mandates that Nest plans to award following a procurement process that took place in 2021 and saw 14 managers apply, according to the statement.

HarbourVest manages a range of private equity strategies, including secondaries via its Dover Street funds, and funds-of-funds that invest in a range of primary, direct and secondaries funds.