Australia’s Future Fund cuts back from its PE portfolio; Oaktree worst impacted

The Future Fund, Australia’s sovereign wealth investment firm, has been cutting back on its private equity portfolio and US investment powerhouse Oaktree Capital is the latest to feel the impact.

Future Fund had invested 3.5 per cent of its $118 billion corpus into Los Angeles-based Oaktree’s various alternative asset classes, including distressed debt and high yield bonds. However, it cut back its investment in December, taking out nearly $500 million, said a report in The Australian.

Oaktree accounted for nearly half of the $1 billion selldown. Future Fund has scaled back exposure to private equity, which carries the promise of high returns but comes with higher risk than other investment options. In the last few months, the PE sector has been feeling the heat due to concerns about the health of the global economy, visible from the downturn in credit and equity markets.

Future Fund sold its positions to Canadian pension behemoth CPP Investment Board, via Setter Capital, the Toronto-based advisor.

Earlier, the Future Fund’s managing director David Neal had voiced concerns that fees are too high in the sector, and that it is over-populated with private equity managers. Similar views were expressed by Calpers, the biggest pension fund in the US.

Also read:

Thailand’s $2.8b Future Fund may increase corpus. China’s CIC among potential investors

India allows pension funds to invest up to 2% of their corpus in alternative asset class

Indian e-commerce major Snapdeal raises $200m from Canadian pension fund, Iron Pillar

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.