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Australia Pensions Bet on Venture Capital in Record Raising Year

  • Square Peg tops $1 billion with new fund backed by pensions
  • Pension funds hunt unicorns, re-imagined sectors post pandemic

Australia’s biggest pension funds are betting the nation’s first recession in about three decades will produce its next tech-unicorns, fueling a record year of venture capital fund raising.

AustralianSuper Pty. and Host-Plus Pty. were among investors backing Square Peg Capital Pty.’s $450 million fund, the venture capital firm said Tuesday. The Melbourne-based firm’s fourth fund adds to the best year for the Australian venture sector that’s raised at least A$1.3 billion ($980 million) in 2020, according to data compiled by Preqin and Bloomberg.