Private Markets Community

Just back from visiting a number of large LPs in Australia. Australia is the 3rd largest pension market globally.

Relevant to Private Markets:
1) Significant discussion on reducing or pausing traditional developed markets allocations: nervousness around the US (uncertainty) and Europe (slowing growth)

2) Recent greenwashing fines are making some investors cautious on new 'sustainability' commitments

3) An acute focus on fees, as fees are published (in the newspaper!) alongside net returns in performance league tables - causing some investors favouring public market allocations

Thanks Rajiv for sharing this - genuinely high-value color. Without being on the ground with Australian super funds, I wouldn't have picked up these nuances (especially fees being publicly scrutinized alongside net returns, and the chill effect from recent greenwashing fines).

My takeaway is mainly that the bar seems to be rising: clarity on net outcomes and much tighter language around what's provable. And it's also a good reminder that "macro uncertainty" by itself may not be a sufficient rationale without a more concrete, outcomes-based case. 

Thanks again, Rajiv - and if you hear any follow-ups or shifts in tone, I'd love to hear them.

Interesting - thank you for sharing. I can definitely identify with the focus on fees - now pension funds are asking for a 3 or even 4:1 co-investment ratio to lower the overall fees and justify fund commitment. I think this will be a global trend and will increase the dispersion between a good and bad manager and eventually drive out the bad managers through inability to raise next fund!