Private Credit Is Next Big Wager for Australia Pension Funds
- Cbus is looking to triple global allocation to private credit
- Private credit markets offer opportunities, Hostplus says
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Australia’s biggest pension funds are losing their appetite for bonds as interest rates peak and are instead ramping up bets on a potentially riskier avenue of higher returns: private credit.
Cbus, which has A$90 billion ($59 billion) in total assets, is planning to triple its global allocation to private credit over the next 18 months, while A$104 billion Hostplus is looking to add to its already record holdings of the asset class. The nation’s biggest pension manager AustralianSuper in December boosted its investment mandate with private-credit specialist Churchill Asset Management.