Institutional investors set aside capital for private debt during the era of low rates, but the alternative asset class could still be attractive in the current environment, according to Australia’s Queensland Investment Corporation.
Regional investors look set to seek more investments in the asset class, especially from North America and Asia, say senior executives at asset owners and fund houses.
The insurer is turning to private equity as part of a search for more investment diversification and yield, says Hong Kong CIO Jethro Goodchild. Infrastructure debt is also gaining appeal.
The asset manager intends initially to hire two executives to originate transactions locally, in response to rising infrastructure activity in Australia, AsianInvestor can reveal.
They plan to boost exposure to these asset classes most of all this year, with outsourcing to external managers high on the agenda, finds GSAM’s annual survey of insurance CIOs.
The Australian firm has already raised $305 million, mostly from Asian institutions, and intends to have a final close by the first quarter of 2014.
Regional pensions and insurance firms are expected to invest in the new infrastructure debt vehicle, which has a $1 billion fundraising target.