AustralianSuper to add 10 new private equity managers as allocation rises to 8%
AustralianSuper to add 10 new private equity managers as allocation rises to 8%
The A$392bn ($254bn) fund currently has relationships with 21 private equity managers but plans to add at least 10 more by 2030, following its decision earlier this year to raise its allocation to the asset class from 5% to 8%.
Mark Hargraves, head of equities at AustralianSuper, said the fund remains positive on private equity despite a wider industry slowdown. “We think there’s still a number of opportunities that can be executed . . . but we also think you need to be selective because there’s quite a lot of dry powder looking for new investments,” he said.
Hargraves highlighted that private equity continues to offer some of the highest return opportunities and expects this to “remain in place for many years.”
To improve cost efficiency, AustralianSuper has increasingly pursued direct co-investments, allowing it to avoid the traditional “2 and 20” fee model. The fund’s private equity team has expanded from just five people six years ago to nearly 40 today, with plans to reach 45–50 in the next few years.
The strategy reflects a long-term commitment to private equity, as institutional investors worldwide weigh the sector’s high-return potential against current exit challenges and record levels of undeployed capital.
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