Australian pension fund increases private credit exposure
Australian pension fund UniSuper has increased its portfolio exposure to private credit.
The fund now holds approximately AUS1bn (£520m) in dry powder, which could potentially be invested in the sector.
In a recent interview with Reuters, John Pearce, chief investment officer of UniSuper, said that next 18 months is an ideal time for unlisted asset deals such as private credit.
Read more: Institutions shift portfolios towards private credit
However, he added that the UniSuper’s size means that it can afford to hold out for the best deals.
“At times we’re the only one across the table,” Pearce said.
“You’re agreeing a price without having to get into a bidding war.
“If you’re got cash to deploy in debt markets or private equity, you should be able to do some smart deals.”
Read more: Private credit to “thrive” as dry powder reaches $292bn
Last year, UniSuper appointed Revolution Asset Management for an undisclosed private debt mandate. Since then, the pension fund has been paying closer attention to the private credit space, with a view to making selective investments.
UniSuper is one of the largest pension funds in Australia with assets under management of more than AUS$120bn.
It returned 10.3 per cent in its primary investment vehicle in the 12 months ending 30 June 2023.
Read more: Australia’s Pengana launches listed private credit fund