NEST Corporation Awards Big Mandates to CBRE Caledon and GLIL Infrastructure

Posted on 04/19/2021


NEST Corporation expects roughly £3 billion is expected to be invested by the end of 2029, infrastructure to make up 5% of Nest’s portfolio. The auto enrollment pension scheme Nest has appointed CBRE Caledon Capital Management Inc. (CBRE Caledon), the private infrastructure investment arm of CBRE Global Investors, and GLIL Infrastructure to help invest nearly £3 billion into infrastructure equity by the end of the decade, here in the U.K. and around the world.

CBRE Caledon’s mandate is to help Nest invest directly in global core and core-plus infrastructure projects. They will provide Nest access to an infrastructure fund sponsored by the firm, with the opportunity to also co-invest in select investments to help Nest members take advantage of bigger projects.

GLIL Infrastructure is a unique organization, representing a joint venture between a number of major local authority pension plans. Nest will invest in the fund along with GLIL’s members, with its open-ended fund giving access to new opportunities in UK core infrastructure. GLIL’s investments to date include equity stakes in Anglian Water, Clyde Windfarm, Forth Ports, a rolling stock fleet of 65 intercity trains on the East Coast Mainline, and investments in biomass and anaerobic digestion energy generation.

Types of infrastructure Nest could be investing in include fibre networks, social housing, water and waste treatment plants, and seaports. Nest’s estimated initial commitment to these mandates will be £650 million, with significant further commitments in subsequent years.

Along with Nest’s recent announcement of Octopus Renewables, this is the first time a U.K. defined contribution pension scheme has been able to significantly invest directly into infrastructure. It represents a major step in the sophistication of Nest’s investment strategy, bringing infrastructure to at least 5% of its total portfolio.

Implementation

CBRE Caledon and GLIL Infrastructure will make investments directly as owners of infrastructure projects, negotiating bespoke deals, and managing the construction and operation of assets.

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