National Employment Savings Trust, London, will become a 10% shareholder in the holding company of asset management firm IFM Investors, becoming the first non-Australian owner of the infrastructure specialist.
IFM is currently owned by 16 Australian superannuation funds.
NEST and IFM expect to capitalize on significant U.K. private market investments and also develop new investment opportunities globally, executives said at a media briefing on Feb. 4. NEST expects to invest around £5 billion ($6.1 billion) through IFM by 2030, including in global infrastructure debt, NEST CIO Elizabeth Fernando said at the briefing.
NEST will also invest in IFM’s other capabilities, with a focus on U.K. investment opportunities. This includes looking to invest in real assets across the U.K., building on the existing assets held within IFM funds.
The agreement also supports NEST’s ambition to diversify and increase its allocations to private market assets to 30% from 17% of its portfolio in the coming years.
Mark Fawcett, CEO of NEST Invest, confirmed at the briefing that financial terms of the private deal were not disclosed. The deal is expected to close by the middle of this year, subject to shareholder and regulatory approvals.
“The first thing we're going to be investing in (through IFM) is an infrastructure debt fund. One of the really attractive things about this partnership is the ability to co-create a product that meets the needs of NEST participants, but will then also work for IFM’s other clients and shareholders,” Fernando added.
NEST is multiemployer defined contribution plan, or a master trust, with about £49 billion in assets. IFM’s existing owners manage retirement savings of more than £580 billion, while the manager runs about A$230 billion ($141.3 billion) in assets.