AustralianSuper to Add 10 Private Equity Managers by 2030 - InforCapital

Melbourne, August 26, 2025 – AustralianSuper, the country’s largest pension fund with more than A$392 billion ($254 billion) in assets, is significantly expanding its private equity portfolio by increasing both capital allocation and the number of external managers it works with.

The fund recently raised its private equity allocation from 5% to 8% and plans to add at least 10 new private equity managers by 2030. Currently partnered with 21 managers, this move would represent a nearly 50% increase in GP relationships, underscoring AustralianSuper’s long-term commitment to the asset class.

Mark Hargraves, Head of Equities at AustralianSuper, stated that while the private equity market is experiencing a slowdown in deal activity, it remains a core source of long-term outperformance. He emphasized the need for selectivity, given the high levels of dry powder across the global market.

To increase cost efficiency, the fund has expanded its focus on direct co-investments, enabling it to bypass traditional “2 and 20” fee structures. The fund’s internal private equity team has grown from 5 people six years ago to nearly 40 professionals today, with plans to scale to 45–50 team members in the near future.

This strategic evolution reflects a growing global trend among pension funds seeking to enhance returns and reduce fee drag through direct investments and co-sponsorships. In 2025, similar moves were made by Canada Pension Plan Investment Board and GIC of Singapore, both of which expanded their PE allocation while boosting internal capabilities to execute and monitor complex deals in-house.

Despite current headwinds in private markets—including slower exit timelines, tighter credit conditions, and a backlog of unrealized assets—AustralianSuper remains bullish on the sector’s risk-adjusted return potential. The fund’s diversified approach includes a mix of buyouts, growth equity, and secondary investments across global markets.

AustralianSuper’s increased allocation to private equity is part of its broader ambition to remain a top-performing global pension fund, while adapting to evolving market cycles and enhancing its internal control over capital deployment and cost efficiency.