Nuveen’s fifth annual institutional investor survey has identified growing investment in environmental opportunities across private equity, credit, infrastructure and real estate. As many as 71% of the UK-based cohort said they are planning to increase their allocations to private markets, with 52% increasing allocations to private credit. Private fixed income is also proving increasingly popular, with 45% of investors planning increased investment over the next two years. In addition, 69% of institutional investors surveyed either already invest or plan to invest in clean energy or carbon reduction strategies via private markets. “Environmental priorities are taking centre stage, shaping investment strategies and driving forward innovation in private markets,” said Sophie Ballard, Head of UK Pensions at Nuveen. “As sustainability becomes a key factor in decision-making, private assets provide a compelling avenue for investors to align financial goals with impactful environmental initiatives.” Nature-focused investments are also gaining traction, with 55% identifying nature loss as a critical economic risk and 66% acknowledging their role in mitigating it. However, it remains a developing area with only 37% placing a greater focus on these themes within portfolios.
