National Employment Savings Trust, London, will increase its allocation to private markets to about 15% from about 9% by January 2022, a spokesman confirmed.
The £15 billion ($20.3 billion) multiemployer defined contribution plan is currently concluding its selection process for up to three managers to run a new allocation to unlisted infrastructure equity. The managers are expected to be announced in the next few months, the spokesman said.
The expected allocation of 5% of total assets will be split into three parts, focusing on global infrastructure, U.K. infrastructure and renewable energy infrastructure. The allocation will complement NEST's existing exposure to private credit. Currently, the private markets allocation, including exposure to real estate and private credit, is 9%.
Existing allocations to private markets assets could also increase depending on market conditions and asset prices, the spokesman said.
"We are expecting that this time next year, post unlisted infra equity mandates being awarded, that illiquids would make up around 15% of our portfolio. That percentage figure will also include investment in our current private credit funds," the spokesman said in an email.
NEST will fund the new allocation to infrastructure equity from new contributions. The plan could also fund these changes from other asset classes, the spokesman said.