The change in tact by the UK’s largest workplace pension scheme will see a stronger focus on unlisted UK companies.

NEST has set aside an initial £200m for Schroders Capital, as reported by the Financial Times, as the first step in the new approach.

It is part of broader plan, says NEST, to raise private markets exposure from 19 per cent to 30 per cent of assets by 2030.

Venture capital has historically been a limited part of UK pension portfolios because of its small scale, uncertain returns and higher risk.

The strategy comes as UK Government ministers and City of London executives push for pension schemes to allocate more money to private markets in search of higher returns and stronger backing for British companies.

Mark Fawcett, chief executive of Nest Invest, says the scheme is seeking to capture high-growth opportunities by moving earlier in the private equity cycle through middle and late-stage ventures.

NEST has 14 million members and receives in the region of £700m in monthly contributions.