Super funds boost private capital industry

7 March 2019
| By Oksana Patron |
image
image
expand image

Australian private capital investment industry has been boosted by significant institutional support from within the nation’s $2.8 trillion superannuation sector, according to the Australian Investment Council, formerly known as AVCAL.

The contribution of the superannuation industry, which is one of the biggest investors into Australia’s unlisted business sector through private capital firms, was expected to accelerate over the next few years.

The industry grew over 27 years to more than $26 billion of assets managed on behalf of institutional investors, including superannuation and pension funds all over the world.

Over the past five years, the sector raised globally more than $19 billion, of which $17 billion went into Australian businesses.

Additionally, according to AVCAL, the analysis of allocations of Australian private capital against the United States showed there was still a considerable room for growth in the domestic market.

“As an industry, we need to remain focused on the important economic contribution played by the private capital,” said Andrew Major, Australian Investment Council board chair and general manager unlisted assets at HESTA superannuation fund.

“There is certainly room to increase institutional investors allocations towards private capital given the proven performance of the asset class.

“The private capital industry is poised for further growth and we believe our nation’s super system will continue to play a critical role in that journey.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The central bank has served up a disappointment for punters on Melbourne Cup Day....

1 hour ago

The fund’s inaugural chief retirement officer is looking to establish a new venture. ...

5 hours 51 minutes ago

The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update....

23 hours 55 minutes ago