Australian money manager Tanarra Capital is planning to launch a AUS$1bn (£0.52bn) private debt fund.

According to Bloomberg reporting, the fund will provide loans of between AUA$100m and AUS$150m to local businesses, with maturities from seven to 12 years. It is targeting “high single-digit interest rates”, according to Violeta Kelly, the firm’s head of long-term debt and debt advisory.

“Our funding is coming from largely untapped supply from the super funds in particular,” added Kelly.

“The super funds very rarely look at fixed income products and if they do, it’s largely financials.”

A number of Australian pension funds have recently signalled their interest in the rapidly growing private credit market.

Read more: Macquarie deploys $A1.5bn into private credit

Last year, Australia’s largest superannuation fund increased its exposure to private credit. Earlier this year, Australian pension fund UniSuper also announced that it was increasing its private credit investments. And the second largest pension fund in Australia – the Australian Retirement Trust – has spoken about its plans to increase its private credit allocations this year.

In order to meet this demand, a number of fund managers have launched private debt vehicles targeting the Australian market in recent months.

Tanarra’s fund will target diversified industrial companies from transport to logistics and building materials, Kelly said.

Read more: Australia’s HMC Capital expands into private credit