National Employment Savings Trust, London, is searching for up to three unlisted infrastructure equity managers, said a spokesman for the £9 billion ($11.7 billion) defined contribution multiemployer plan.
The allocation is new. Unlisted infrastructure equity will be added to NEST's default option as a new asset class. Selected managers will need to demonstrate high quality and evergreen investment processes, a robust risk management and consideration for environmental, social and governance factors.
The allocation is split into three parts focused on global infrastructure, U.K. infrastructure and renewable energy infrastructure, the spokesman said, adding that between one and three managers will be selected. The size of the planned allocation is not yet disclosed until submissions are made and managers are evaluated, the spokesman said.
"It's clear that when chosen and managed carefully unlisted infrastructure equity typically offers stable, long-term returns even in difficult market conditions. Before applying, fund managers need to carefully consider their fees and investment structures. We need approaches that are repeatable, affordable and scalable to match NEST's rapidly growing AUM," said Stephen O'Neill, head of private markets, in a news release.
Proposals are due Feb. 17 through NEST's procurement platform. Registration is required.