National Employment Savings Trust, London, is seeking managers for a U.S. corporate direct lending investment mandate, according to a news release.
The initial size of the mandate will be £500 million ($610 million), with the potential to be extended over time.
This aims to further build NEST's investment portfolio in private direct lending to the U.S. corporate middle market. The mandate will primarily target loans that finance private equity sponsored unlisted companies across sectors such as healthcare, technology, consumer, and industrial.
“By targeting the U.S. middle market, we aim to capitalize on the attractive yield premium that typically comes from this asset class. We look forward to receiving the submissions and developing a partnership with the successful bidder,” said Stephen O'Neill, head of private markets at NEST, in the news release.
NEST is aiming to have up to 30% of its assets invested in private markets by 2030.
The tender process will be conducted through NEST’s procurement platform, and the deadline for receipt of tenders is Feb. 21.
NEST is a corporate defined contribution fund with about £49 billion in assets.
