Retirement
AustralianSuper injects $13bn investment into private equity
A new investment of $13 billion into private equity globally over the next two years from AustraliaSuper, the nation’s biggest superannuation fund, is expected to bolster long-term returns for its members.
AustralianSuper injects $13bn investment into private equity
A new investment of $13 billion into private equity globally over the next two years from AustraliaSuper, the nation’s biggest superannuation fund, is expected to bolster long-term returns for its members.
The super fund intends to inject $9.5 billion into the United States where it’s targeting a range of sectors including healthcare, technology, industrials, consumer and financials.
The new $13 billion investment is a core element of an ambitious financial strategy, under which the fund aims to invest in a diversified portfolio of private equity that it forecasts will boost its overall private equity investment to $26 billion over the next two years, further reaching $50 billion within five years.
Already spruiking a mammoth $260 billion in member assets, the new investment follows the recent expansion of its offices into New York. The fund currently invests $72 billion globally, with the expectation of growing to $100 billion by 2024.
AustralianSuper’s head of private equity, Terry Charalambous, said the fund will increase its allocation to private equity from 5 per cent today to 7 per cent by 2024 as part of its strategy to boost investment in unlisted assets.
“We have a compelling offer,” Mr Charalambous said. “Not only can we act quickly and deploy large amounts of capital, but we can also bring considerable value to the process by leveraging the deep sector expertise of a 70-person strong global listed equities capability that manages over $143 billion.”
“To help implement the fund’s strategy, our US-based private equity team will grow to 20 members in the next few years, focused on strengthening relationships with well-aligned investment partners and sourcing compelling long-term investment opportunities,” Mr Charalambous said.
He said that the fund has adopted a three-pronged investment approach, which includes investing in General Partner (GP) funds, investing alongside GPs in co-investment and co-underwriting opportunities.
“We have a strong focus on identifying best-in-class managers and working with them to build a relationship that will enable us to invest across all our strategies over the long term," Mr Charalambous said.
“We have strong relationships with our GP partners who we work with strategically in co-investment and co-underwrite opportunities.”
He hailed the fund’s large pool of long-term capital, as well as its processes that align with the “cadence of private equity transactions and can assess and act on opportunities very quickly”.
Following its start in co-underwriting in 2018, AustralianSuper has worked with preferred GPs to deploy $3 billion in co-underwrite transactions and co-investments over the past 18 months across 10 transactions globally.
Mr Charalambous said the fund is working with leading GPs to source opportunities, including management buyouts, growth equity financing and public to private transactions.
RELATED ARTICLES
Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more
Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more
Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more
Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more
Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more
Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more
Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more
Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more
Superannuation
Superannuation guarantee rate rises to 12 per cent as parental leave changes take effect
The superannuation guarantee rate has increased from 11.5 per cent to 12 per cent from Tuesday, with super contributions also being added to Commonwealth Parental Leave Pay for the first time. Read more
Superannuation
Rest's Sustainable Growth option achieves highest sustainability classification
Rest superannuation fund has achieved the highest sustainability classification for its Sustainable Growth investment option from the Responsible Investment Association Australasia. Read more
Superannuation
Aware Super slashes admin fees for retirees by up to 25 per cent
Aware Super has reduced administration fees for members with a retirement income account by up to 25 per cent and lowered the maximum annual fee. Read more
Superannuation
SuperAPI co-founder criticises Labor's superannuation tax as 'sneaky tax on young people'
The co-founder of SuperAPI has labelled Labor's proposed tax on superannuation balances above $3 million as a "sneaky tax on young people, tomorrow" disguised as a policy targeting wealthy retirees ...Read more
Superannuation
Election policies could reshape Australia's superannuation landscape, expert warns
Competing superannuation policies from Australia's major political parties could have significant implications for investors and retirees, according to a financial expert. Read more
Superannuation
Industry leaders weigh in on concessional super tax as Budget confirms $55bn investment
Changes to the taxation of superannuation earnings and contributions have drawn mixed responses from financial and payroll sector leaders, as the Federal Budget confirms over $55 billion in ...Read more
Superannuation
Call for indexation on super tax cap as $3m threshold draws criticism
A senior executive in the superannuation technology sector has criticised the Federal Government for failing to index the proposed $3 million superannuation tax cap, arguing the measure will unfairly ...Read more
Superannuation
Rest members back calls for fairer superannuation rules ahead of Federal Budget
Rest has called on the Federal Government to implement superannuation reforms aimed at improving fairness across the system, after member survey results showed strong support for a range of proposed ...Read more
