AustralianSuper plots private equity expansion

Investment Magazine

Australia’s largest super fund is planning to increase both its allocation to private equity (PE) and the number of managers it uses in the asset class amidst a broader shift in how super funds are investing across the private markets. “Our PE allocation is currently about five per cent, representing a portfolio of $20 billion across more than 20 primary PE relationships,” AustralianSuper global head of private equity Terry Charalambous told Investment Magazine in a statement. “We have plans to increase the PE allocation to roughly eight per cent in the medium term. As we grow our PE allocation we will continue to add new PE managers in line with our partnership approach.”

Over the last 12 months, AustralianSuper has added more than 10 new PE managers across North America, Europe and Asia and committed over $3 billion to funds. In the financial year to date, it’s deployed more than $2 billion in co-investments across over 10 transactions. “Private equity remains a highly attractive asset class, delivering superior long-term returns for members,” Charalambous says. “We see a lot of opportunities in this sector and we will deploy more funds as we add more managers.”

The rest of this article can be found at investmentmagazine.com.au.