Aussie Future Fund vehicle makes private equity debut

The Medical Research Future Fund, managed by Australia’s sovereign wealth fund, has made its first investment into private equity.

The Australian government’s Medical Research Future Fund (MRFF) has diversified its portfolio and made its first allocation to private equity, Private Healthcare Investor  reports.

David Neal, managing director of The Future Fund which manages MRFF, said in its portfolio update last month that MRFF was valued at A$3.1 billion ($2.4 billion; €2.1 billion) as of 31 March, with 8 percent distributed to private equity.

The MRFF has a target size of A$20 billion by 2020 – the largest fund of its kind in the world. It was established in January 2015 and aims to have around A$1 billion to spend every year on new medical research projects. The fund will also support partnerships between researchers, healthcare professionals and the community.

Future Fund, Australia’s A$117 billion sovereign wealth fund, will manage MRFF. It has committed capital to private equity buyout firms Apax Partners, Archer Capital, Bain Capital and Quadrant Private Equity.

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