AustralianSuper targets India and Japan as PE allocation increases
AustralianSuper is planning to increase its private equity exposure to India and Japan as Australia’s largest pension fund expands its presence across Asia and anticipates improving deal activity in the region, according to a report by Bloomberg.
AustralianSuper, Australia's largest pension fund, is expanding its private equity exposure to India and Japan as part of its ongoing presence growth in Asia, reports Bloomberg. Currently, Asia accounts for approximately 10% of AustralianSuper's private equity portfolio, but the fund anticipates doubling this figure over the next three to five years, according to Lilian Fang, the fund's head of private equity for Asia Pacific.
The AUD430bn pension fund currently holds about AUD22bn in private equity globally, representing roughly 5% of its total assets. This is a slight increase from February, when AustralianSuper stated its private equity allocation could double. Fang highlights the current low private equity penetration across Asian markets as a prime opportunity for institutional investors to increase their exposure to the region.
Japan, in particular, is a focus for AustralianSuper due to corporate governance reforms, which are generating more potential transactions. The fund is targeting businesses with ageing founders who have yet to identify successors, offering potential capital and ownership solutions. AustralianSuper is also considering investments in various sectors, including healthcare, consumer businesses, education, and artificial intelligence.
While Fang emphasizes that the investment case is the primary consideration, healthcare is becoming a significant theme in India and Southeast Asia due to rising incomes and the expansion of the middle class. AI is another area of interest, particularly as data centre development accelerates across Asia. Over the past financial year, AustralianSuper has invested more than AUD3bn across 26 private equity transactions and added over 15 private equity managers across North America, Europe, and Asia.
Fang expects the number of external managers to rise further as AustralianSuper increases its overall private equity allocation, signaling the fund's broader expansion into private markets across Asia.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
