In a recent ION Analytics fireside chat, Kyle Lidbury, Chief Investment Officer at Perpetual Private, explored the evolution of private assets in Australia and their growing significance in diversified investment portfolios.
Kyle detailed Perpetual Private’s 15-year journey in alternative investments, highlighting the expansion of our alternatives portfolio to approximately $1.5 billion. He emphasised the role of private assets in providing diversification and stability, especially during periods of market volatility.
The discussion addressed the maturation of Australia's private asset market, noting increased institutional participation and the influence of superannuation funds. Kyle underscored the importance of robust governance, independent oversight, and thorough due diligence in managing alternative investments. He stressed the necessity of engaging directly with decision-makers in investment firms to assess performance and track records effectively.
Looking ahead, Kyle expressed optimism about opportunities in Japanese private equity and anticipated growth in secondary markets. He also discussed the challenges within Australia's private credit market, citing its relative immaturity and the imbalance between high investor demand and limited deal supply. Consequently, Perpetual Private is focusing on more developed markets in the US and Europe for private credit investments.
Overall, Kyle's insights shed light on the strategic integration of private assets into investment portfolios, emphasising their potential to enhance diversification and resilience in the face of economic uncertainties.