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
“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.