AustralianSuper, the country’s largest pension fund, is preparing to finalise four new private equity deals by the end of 2025, as part of a broader strategy to increase exposure to unlisted assets.

According to Chief Investment Officer Mark Delaney, the fund is “looking to put on four new private equity managers over this calendar year period,” adding that discussions are already well underway. “The team know these managers from working previously with them and they have really good long-term track records in straight-down-the-line, conventional, private equity,” he said.

While Delaney did not disclose specific firms, the move highlights AustralianSuper’s deepening commitment to private markets amid a subdued environment for capital raising.

The push follows a significant expansion of the fund’s New York office, now staffed with approximately 60 people, many of whom are focused on developing relationships with private equity managers. Delaney noted that he had met with several firms during two recent trips to New York.

“Capital raising is very low and generally investing in vintages when raising is low is the best strategy for private equity,” he explained, describing the asset class as increasingly attractive in the current cycle.

AustralianSuper, which manages over A$365bn ($240bn), recently announced plans to grow its private equity allocation within its balanced investment option from 5% to as much as 8%.

The shift comes as listed equity performance has remained concentrated in a few mega-cap tech stocks, which Delaney said has not aligned with the fund’s diversified investment approach. He remains optimistic, however, that long-term diversification will deliver improved returns over time.

Despite concerns around US tariffs and geopolitical volatility, Delaney sees no need to reduce equity exposure. “There is a strong consensus that tariffs will cause a meaningful slowdown in the US economy but no recession,” he noted. “We don’t think it’s enough for us to go underweight stocks.”

Source: Bloomberg

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