Schroders shutters Australia private debt business
Schroders has closed down its Australian private debt business due to difficulties originating new investments and raising funds.
Bloomberg has reported that the Schroders Australia’s chief executive and chief investment officer Simon Doyle sent an email to investors stating that the firm’s Australian business will continue to focus on direct real estate lending, alternative credit, asset-backed finance and private equity.
Read more: Schroders’ private markets business sees £1bn of inflows in Q3
He added that the firm’s “private assets team are better directed towards other areas.”
Nicole Kidd, Schroders’ head of private debt for Asia Pacific, and Tim Hallam, a portfolio manager, will remain with the firm.
Schroders’ Australian arm manages less than AUS$100m (£49.69m) in private debt assets in Australia, according to the company.
Read more: Schroders forecasts 2025 as ‘vintage year’ for private credit
Schroders has been operating in the Australian market for more than 60 years.
In 2021, the firm partnered with family office RF Group to create Schroders RF, a real estate credit investment manager. Schroders RF won’t be impacted by the closure of the private debt business.
Schroders Capital – the UK-based private market investment division of Schroders plc – recently published its Private Markets Outlook 2025 where it stated that fundraising shows signs of reduced competition for new investments, more attractive entry valuations and greater performance potential, although this is happening to varying degrees across different sectors.
