For Funding, Head Over To Down Under

 

Nancy Gordon, Buyouts, 29 March 2010

 

In Issue 7 of the Thomson Reuters Buyouts journal, published on 29 March 2010, Nancy Gordon wrote an article on the Australian superannuation (pension) funds industry and its appetite for private equity.  The article highlights that there is a large pool of capital to be invested and that the private equity programmes of Australian superannuation funds are maturing.

 

Gordon spoke to Les Fallick, Chairman of Principle Advisory Services, while researching her article. Some of Les’ comments are included here.

 

Gordon suggests that while there is already plenty of exposure to larger funds, the Australian LPs are now looking at smaller funds, demonstrated by a list of recent commitments made to smaller funds by Australian LPs.

 

“It’s difficult to estimate just how much money LPs from Australia might commit to private-equity funds this year, but $3 billion is “not out of the ball park”, said Les Fallick, founder and executive chairman of the Sydney-based Principle Advisory Services, a placement agent for Australian and international private-equity funds. They are interested in mid-market and niche buyouts, growth capital, clean tech and emerging markets, he said.”

 

Gordon states that “fourteen Australian LPs identified by Buyouts as having an interest in U.S. private-equity firms have more than A$450 billion in assets under management”.

 

“Direct investing in companies and co-investing are “very topical at the moment”, said placement agent Fallick, because LPs want to lower their management expense ratio.”

 

The article concludes with a look at which funds have engaged outside advisers to help build their portfolios including in some instances building separate accounts so the LPs have greater control over investment decisions and lower fees to pay.

 

 

Due to copyright issues we are not permitted to reproduce the article.