Australian pension funds step up European private markets push on UK–France tour

Australia’s largest pension managers are this week travelling to France and the UK as part of a renewed effort to expand private market investments in Europe, following a similar outreach trip to the United States last month, according to a report by Bloomberg.

Senior representatives from the AUD4.5tn (€2.7tn/$3.2tn) superannuation sector – including AustralianSuper, Australian Retirement Trust and Aware Super – are scheduled to meet with policymakers and investment figures in France before continuing on to discussions with UK government officials.

The delegation comes as offshore allocations continue to rise sharply. More than 60% of new inflows into Australian pension funds are now invested outside the country, with exposure to the UK and European Union expected to exceed A$660 billion over the next decade, according to a joint statement from participating funds. The industry is also projected to become the largest pool of pension capital outside the United States within five years.

Australian funds already maintain significant direct holdings across European infrastructure and real assets, including interests in airports such as Manchester, Vienna and London Gatwick, alongside utilities and real estate platforms.

Alongside the three largest funds, the group also includes CBUS Super, HESTA and Rest. The UK’s Nest pension scheme — which holds a stake in Australian infrastructure investor IFM Investors — is also taking part in the discussions.