Super funds and private equity

As a rule, supers started by getting into funds-of-funds. Their first direct GP commitments have tended to be local because that's the easiest route. It's also much easier to do due diligence on a Sydney or Melbourne GP.

But then they ran into the conundrum that it's nonsensical to have half of a $3-4 billion private equity program invested with Aussie managers when Australia represents perhaps 2% of the global private equity market. As their programs have evolved, they've trended toward an 80/20 mix, foreign to local, which amounts to a negative for domestic GPs. But because Australian LPs generally have legislated growth forming at about 15% p.a., there's a structural offset to this trend.

"We might end up a smaller piece of the pie. But the pie keeps getting bigger," says Archer's Wiggs.

 

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• Topics
• Australasia
• LPs
• GPs
• Peter Wiggs
• Archer Capital