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June 2022
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Schroders wins A$250 million private debt mandate from Australian super fund

By Hui Ching-hoo   
April 29, 2022

UK asset manager Schroders plc says its alternatives investment unit Schroders Capital has won a A$250 million (US$178.1 million) private debt mandate from an Australian superannuation fund.

The mandate covers corporate, real estate and infrastructure debt and has a targeted return of 4.5% over the benchmark Bloomberg AUSBOND Bank Bill index, Schroders says in a statement on April 27. It did not name the fund.

The company says this is the first private debt mandate from a superannuation fund for Schroders Capital, which managed A$103 billion of alternative assets as of December 2021.

According to Nicole Kidd, Schroders’ head of private debt, Australia, the global private debt market is expected to top $1.4 trillion by 2025 and that Australia, where the market for the asset class is still nascent, is “emerging as a strong and attractive region for private debt investors”.

“We are seeing a great opportunity emerge in Australia in bringing together investors looking for attractive returns with borrowers looking for flexible capital,” she says.

London-based Schroders had $1.15 trillion of assets under management at the end of 2021.