Australian Investment Council’s Post

Private markets investments have long been an asset class of choice for family offices, but wealthy Australian families have increasingly taken on private markets exposure as Private Equity firms raise more capital, and a plethora of private debt funds hit the streets. However it is the direct, passive business opportunities that are gathering the most momentum, and many Aussie investors are quietly cashing in on great Aussie small businesses without the middle man in a passive private equity exposure to boost their personal wealth. Read more here: https://lnkd.in/gAsbVMsm #privateequity #wealthmanagement #familyoffice #familyenterpriseadviser #privatedebt

Direct private equity is fast becoming the private equity investment opportunity of choice for wealthy families. More small-medium sized business owners are selling ahead of retirement, and passive equity holders are increasingly looking at the quality of these businesses as the opportunity of a lifetime.

Family offices (FOs) are increasingly rebalancing their portfolios toward private markets, drawn by the potential for higher returns, diversification, exclusivity, and alignment with long-term wealth objectives. ➡️ As public market opportunities shrink, the unique benefits of private equity such as exclusivity and control, making this shift particularly appealing for FOs focused on long-term wealth preservation. ➡️ Private markets (PMs) are not without risks, including illiquidity, limited transparency, and the potential for fraud. However, one might question whether public markets are truly transparent or free from fraud, or if they are just as fraught with both. ➡️ With a disciplined approach that includes conservative allocations, robust due diligence, and partnerships with credible private equity managers, FOs can harness private markets for sustainable growth. ✅ Why This Move to PMs is a Great Move 📍PMs complement the intergenerational goals of most FOs, allowing for stable and patient capital/wealth growth. 📍PMs have historically outperformed public markets, offering a compelling case for rebalancing. 📍Private equity often yields stronger returns than traditional public markets, making it worth the illiquidity trade-off. 📍Most FOs also have the liquidity flexibility to handle long-term commitments. 📍Fraud concerns can be managed through robust due diligence, and collaboration with credible investment partners can minimize exposure to fraudulent ventures. 📍Reducing allocation to public equities offers their portfolio protection against public market volatility. Is the public markets really transparent and free from fraud? Or is it equally fraught with both if not more? #PrivateEquity #RealAssets #Diversification #WealthPreservation #FamilyOffices https://lnkd.in/gAzMyRX3

Superannuation funds will have to deal with the ACCC more often than ever before under the ACCC’s proposed merger reforms - not just for fund mergers, but also for their ordinary, direct investment activity. In this video, I discuss how superannuation funds are likely to be impacted with my competition law partner, Jeremy Jose. If you work within a super fund’s investments team or investments-legal team, it is definitely worth watching - let me know if you would like to discuss any of these issues further!

The private equity industry has seen significant growth, becoming a key asset class in today's economy. Institutional investors like pension funds and endowments are increasingly allocating capital to private equity funds, attracted by higher returns and diversification benefits. Explore the latest trends and insights in private equity 🌐 Visit our website: https://lnkd.in/gQn3APjv #PrivateEquity #InvestmentTrends #InstitutionalInvestors #HigherReturns #Diversification #CrossBorderCapitalAdvisors #CBC_advisors #CrossBorde

Schroders and Phoenix Group form a strategic partnership to launch Future Growth Capital (#FGC), the first private market investment manager to be established in the UK to promote the objectives of the #MansionHouseCompact. FGC aims to deploy a significant allocation of up to £2.5bn over three years from Phoenix Group, in line with its Mansion House Compact ambition, with an initial £1bn commitment. In total, FGC will aim to deploy £10-20bn of investor funds into private markets over the next decade. FGC will deliver improved outcomes for long-term pension savers in the UK by enabling efficient access to private markets investments and their potential for delivering higher long-term investment returns. FGC will invest in the British businesses of the future and provide long-term financing to help them grow. More info here: https://lnkd.in/gh7TAP49

SCOOP with Michael O'Dwyer: Schroders has kicked off a search for a successor to its chief executive Peter Harrison, who is preparing to step down as the boss of the UK’s largest #assetmanager after eight years. The £750.6bn FTSE 100 group, whose founding family is its largest shareholder, has hired headhunters at Russell Reynolds Associates to work on “a full and extensive global search”, with succession expected to take place in 2025. Harrison has sought to offset the decline of Schroders's traditional business by pushing into faster-growing areas such as #privatemarkets, #wealthmanagement and in its business line that offers outsourced chief investment officers and liability-driven investing to #pensionfunds. But he has had to contend several headwinds: the rise of cheaper passive investing, a shift in investor demand from public to private markets, and a multi-decade shift by UK pension funds away from holding shares in their local market.

Recent Movements in Wealth Management 👩💼👨💼 ▶ Andrew Ko is announced as Aware Super's Head of Group Strategy, beginning his role in December 2024. https://lnkd.in/gk9eeFey. ▶ CapitaLand Investment strengthens its Australian presence with the appointment of a local CEO and Chief Investment Officer. https://lnkd.in/gDDfRmTR ▶ Paddy Crumlin, Jason O'Mara, and Lucy Weber join the Cbus Super Fund Board after passing APRA's 'fit and proper persons test,' as part of Deloitte's ongoing independent review. https://lnkd.in/gZ-y-B5E ▶ Fiducian Group Limited welcomes Jonathan Green as its new General Manager of Superannuation, officially starting on 18 November 2024. https://lnkd.in/gRkFGnRq. ▶ The Future Fund LLC promotes six investment professionals, including James Fraser-Smith and Shikha Gupta, into Executive Director roles under its newly unveiled team structure. https://lnkd.in/g-eiK2Gn ▶ Insignia Financial's Independent Non-Executive Director John Selak steps down in 2024, ending nearly a decade of service. https://lnkd.in/gKEe8Jg3. ▶ JANA Investment Advisers welcomes Enda J Mahoney as its new General Manager of Technology and Data , overseeing IT and data strategies. https://lnkd.in/gzD3_nNR ▶ Newmark Capital hires Nathan Wares as Head of Wholesale, transitioning from Prime Value Asset Management. https://lnkd.in/g5Xb88r2 #Movements #News #WealthManagement #Investment #Superannuation #Insurance

"In some ways, it’s a turning of the tables. The growing appetite of super funds to invest in private equity (and private debt) has been well-documented; now we’re seeing private equity scouring the planet for attractive assets and turning up as investors in the $4 trillion Australian superannuation industry."

The growing appetite of super funds to invest in private markets has been well-documented, but now we’re seeing the tables turned as private equity scours the planet for attractive assets. With eyes fixated on Australia's $4 trillion superannuation industry, its latest target is Insignia Financial. But given the hefty ROI expectations of private equity investors, we could soon see for-profit super funds on steroids. #opinion #insignia #privateequity #financialadvisers #financialplanning #financialservices