As AUM Continues to Grow, Australian Pension Funds Are Primed to Invest With U.S. Private Fund Managers

For more than 25 years, Australia’s compulsory superannuation system has expanded its assets under management. Currently managing assets valued at A$2.6 trillion, the superannuation funds (known as “super funds” or “supers”) are twice the size of Australia’s gross domestic product and comprise the world’s fourth-largest pension fund system behind those of the U.S., U.K. and Japan. There is little doubt that the private funds industry will feel the effects of the continued growth in Australian super funds over the next decade. Given this growth and the super funds’ clear interest in investment opportunities outside of Australia, all fund managers should familiarize themselves with the supers. In a guest article, Paul Downs, partner at Hogan Lovells, provides background on Australian superannuation fund growth, structure, organization and investment activity, as well as discusses key considerations and requirements of which fund managers should be aware when negotiating with these investors. See “Practical Guidance for Hedge Fund Managers on Raising Capital in Australia, the Middle East and Asia” (Oct. 30, 2014). For additional insight from Hogan Lovells, see “ECHR Decision Imposes New Criteria for Email Monitoring Practices on Fund Managers With European Operations” (Sep. 28, 2017).

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