Investment leaders at Australia’s largest pension funds are turning their focus to private markets as a key growth strategy in 2025. With the nation’s A$4.1 trillion ($2.6 trillion) retirement industry expanding rapidly, funds such as Aware Super, Australian Retirement Trust (ART), UniSuper, and Colonial First State are leading the charge to increase allocations in unlisted assets.
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This move reflects the growing need to diversify away from traditional listed markets, especially with billions in compulsory inflows fueling the world’s fourth-largest pension system. Currently, about 50% of Australian pension assets are invested offshore, with funds actively pursuing private-market opportunities globally.
Where Australia’s Top Pension Funds Are Investing
UniSuper
UniSuper, managing A$139 billion, aims to grow its private credit allocation, currently at 1%. Penny Heard, Head of Australian Equities, emphasized building up cash reserves to seize better investment opportunities.
Australian Retirement Trust (ART)
As the second-largest fund with A$330 billion under management, ART plans to boost its unlisted markets allocation from its current 30% in high-growth and balanced options. Key areas of interest include digital infrastructure like data centers, land titles, and motor registries.
ART’s Head of Investment Strategy, Andrew Fisher, noted the need to weigh opportunities carefully, stating, “If we can’t find something better than equities, we won’t shift the money.” ART has already invested in UK retirement living, Norwegian student housing, and multifamily living in the US.
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Aware Super
With A$184 billion in assets, Aware Super is expanding its unlisted markets allocation of 25-27%, targeting office, retail, and residential properties. The fund recently acquired a Brisbane office building and plans to invest billions more across private equity, infrastructure, and private credit.
Chief Investment Officer Damian Graham anticipates deal flow to increase throughout 2025, with the fund’s current allocation including 11% in infrastructure and 6% in property.
Colonial First State (CFS)
Managing A$160 billion, CFS is redirecting investments from listed real estate and infrastructure into unlisted infrastructure and private equity. Chief Investment Officer Jonathan Armitage highlighted a focus on smaller-cap companies poised to benefit from international policy shifts, particularly in the US.
QIC
Overseeing A$111 billion, QIC is doubling down on private assets, managing funds for both the Queensland government and external clients. Chief Economist Matthew Peter predicted a slowdown in stock market growth but noted renewed opportunities in real estate for 2025.
Brighter Super
This Brisbane-based fund, managing A$33 billion, plans to raise its infrastructure allocation in its default fund from 8% to 10% over the next three years. CIO Mark Rider is exploring investments in airports, toll roads, batteries, data centers, and fiber networks.
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The Bigger Picture
With private investments offering stable long-term returns, Australia’s pension funds are adapting their strategies to meet growing demand and navigate evolving market conditions. By embracing unlisted assets, these funds are positioning themselves for sustained growth while enhancing the financial security of millions of Australians.
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