Colonial First State has selected J.P. Morgan Asset Management to manage its debut private equity allocation, marking a strategic move by the Australian superannuation fund into unlisted assets.

The new multi-year deployment programme will focus on secondaries and co-investments in small to mid-market buyouts. The strategy aims to capture opportunities in the current market cycle, with an emphasis on investments offering strong risk-adjusted returns.

“We were particularly impressed by the depth of their private equity team, their commitment to delivering tailored solutions, and their ability to access and leverage the broader capabilities and relationships across the J.P. Morgan organisation,” said Jonathan Armitage, Chief Investment Officer at Colonial First State.

J.P. Morgan’s Private Equity Group, which manages $351bn globally, brings a bottom-up, high-conviction investment approach supported by more than 250 general partner relationships.

Ashmi Mehrotra, Global Co-Head of the Private Equity Group at J.P. Morgan, said, “We’re incredibly proud of the platform we have built, and since 2008 the PEG team has generated direct alpha comfortably above the MSCI World Index on a net of fees basis.”

Andrew Creber, CEO for Australia and New Zealand at J.P. Morgan, added, “Private equity plays a critical role in diversifying portfolios… We are a big believer in long-term strategic partnerships and ultimately aim for our clients to view J.P. Morgan as an extension of their own investment teams.”

The partnership deepens Colonial’s engagement with J.P. Morgan Asset Management, which already spans both public and private market strategies.

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