Pinsent Masons advises Nest pension scheme on infrastructure investment

Following the deal, infrastructure will now make up at least 5% of Nest’s total portfolio and is the first time a UK defined contribution pension scheme has been able to significantly invest directly into infrastructure.

Nest intends to invest in a range of infrastructure types including fibre networks, social housing, water and waste treatment plants, and seaports. Nest's investment in GLIL will form part of an estimated initial commitment to these mandates of £800m, with significant further commitments in subsequent years.

The Pinsent Masons team acting on the deal advised Nest on all aspects of its investment in GLIL and included investment funds partners Oliver Crowley and David Young alongside Hatice Ismail and Sofia Stavridi advising on tax.

Commenting on this, lead partner at Pinsent Masons, Oliver Crowley said:
“This is a vital step in the sophistication of Nest’s investment strategy and a fantastic opportunity for long-term returns to ensure a better retirement for all its members. We are seeing infrastructure investment at the heart of the UK’s economic recovery plans and Nest’s appointment of GLIL Infrastructure means that they can play a key role in funding some of those projects. We were pleased to be in a position to assist Nest on this landmark investment further showcasing the firm’s expertise in advising on complex consortium structures.”

Discussing the new mandate Stephen O’Neill, head of private markets at Nest, said:

“We’ve been reviewing for a while the positive impact infrastructure can have in our portfolio, so to have the contract with GLIL Infrastructure signed is fantastic. I want to thank Pinsent Masons and their team for working hard to get us over the line. We’re now in a position to start deploying capital, allowing our members to benefit from investments that have previously been out of reach for auto enrolled savers.”