BlackRock has significantly expanded its mandate with Australia’s sovereign wealth fund, according to a report by Bloomberg.

The firm now manages approximately A$7.5bn, equivalent to around $5.2bn, of the Future Fund’s alternatives portfolio, marking a 74% increase over the past two years and making it the largest manager within the allocation.

The Future Fund, which oversees A$267bn in assets, continues to increase its exposure to alternative investments, including hedge funds, private equity, private debt, and infrastructure, which now account for around 15% of the portfolio.

The strategy reflects a broader shift among institutional investors seeking diversification and resilience amid rising correlations between traditional asset classes such as equities and bonds.

The fund has also allocated A$1.1bn to JJJ Capital Management, a London-based hedge fund, highlighting continued demand for specialist alternative managers.

BlackRock’s expanded mandate underscores its ability to capture institutional capital across a broad platform spanning public and private markets, as well as technology-driven investment solutions.

The development also points to intensifying competition for mandates from large sovereign investors, particularly in private markets, where allocations now account for more than 40% of the Future Fund’s total assets.

The fund delivered a 12.4% return last year, supported in part by its private market investments, although regulators in Australia are increasing scrutiny of unlisted asset exposure.

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