Vision Super, a Melbourne-based superannuation fund, has appointed new private equity managers across Australia, US and Europe as it expands its exposure to the asset class.
Graeme Smith, Vision Super’s Investment Manager said the fund’s new mandates, combined with the Super Vision’s existing private equity holdings, will form 5 percent of the fund’s overall allocation, up from a previous long-term target of 3 percent.
In Australia, Vision has appointed Macquarie Funds Management, Quay Partners, ABN Amro Capital. This isn’t the first time Vision Super is investing with Quay Partners, Smith said in an interview. The Australian fund-of-funds has recently closed a new fund.
In the US, Vision Super has appointed Lexington Capital Partners, Mesirow Financial Private Equity Partners and Montagu Newhall Global Partners, and in Europe, LGT Capital Partners and Adveq Private Equity Partners.
Also in Europe, Vision has committed to invest, via ABN Amro, in the EMP Emerging European Convergence Fund. Aside from the latter, Vision Super’s new mandates are all fund-of-funds, a structure it prefers.
Melbourne-based Frontier Investment Consulting assisted in the process of selecting the managers, Smith said. Australian superannuation funds typically engage a consultant to help in the selection of funds to invest in.
Smith said: “Our objective in investing in private equity is to achieve returns that exceed those of listed investments by 5 percent a year over the medium to long term.”
Vision Super has invested in private equity since 1999. Last year it raised its allocation to 5 percent from a previous target of 3 percent. Super Vision has A$3.5 billion of funds under management, of which a maximum A$180 million can be invested in private equity.