This paper is a comprehensive study of the nest representations for the free semigroupoid algebra ${\mathfrak{L}}_G$ of a countable directed graph $G$ as well as its norm-closed counterpart, the tensor algebra ${\mathcal{T}}^{+}(G)$.

We prove that the finite-dimensional nest representations separate the points in ${\mathfrak{L}}_G$, and a fortiori, in ${\mathcal{T}}^{+}(G)$. The irreducible finite-dimensional representations separate the points in ${\mathfrak{L}}_G$ if and only if $G$ is transitive in components (which is equivalent to being semisimple). Also the upper triangular nest representations separate points if and only if for every vertex $x \in {\mathcal{T}}(G)$ supporting a cycle, $x$ also supports at least one loop edge.

We also study faithful nest representations. We prove that ${\mathfrak{L}}_G$ (or ${\mathcal{T}}^{+}(G)$) admits a faithful irreducible representation if and only if $G$ is strongly transitive as a directed graph. More generally, we obtain a condition on $G$ which is equivalent to the existence of a faithful nest representation. We also give a condition that determines the existence of a faithful nest representation for a maximal type ${\mathbb{N}}$ nest.