Specialist asset manager Revolution Asset Management has been appointed to oversee the $115 billion super fund UniSuper’s private debt portfolio in Australia and New Zealand.
Revolution Asset Management was established to provide institutional and high-net-worth investors with access to the Australian and New Zealand private debt market, with a focus on capital preservation.
The firm had been steadily deploying capital towards senior secured Australian and New Zealand private debt through the separately managed portfolio since it was established earlier this year.
By partnering with UniSuper to support its 620,000 members, the fund manager would aim to provide stable income from the senior secured loans.
Its long-term investment strategy was tracking above its target return of cash plus 4 per cent to 5 per cent a year and would seek to achieve this return with low volatility.
Corporate leveraged loans, private asset-backed securities and real estate loans, excluding construction or development, offered the most compelling value.
Bob Sahota, chief investment officer at Revolution Asset Management, founded the specialist debt manager in 2018.
Regarding the appointment by UniSuper, he commented: “I am delighted on behalf of the team at Revolution Asset Management to have been appointed by a super fund that has a long and proud history of managing the retirement savings for generations of Australians.
“Private debt has been an important component of institutional and wealth portfolios, and in the current uncertain environment can help to further diversify risk and deliver stable income. We look forward to a long and mutually beneficial relationship that will grow over the coming years.”
Revolution Asset Management’s strategy focused on lending to firms with market-leading positions, high barriers to entry and transparent cash flows.
The company had raised more than $2.5 billion from institutional, wholesale and family office investors, with its Australian and New Zealand private debt portfolio returning above its stated target of 9.6 per cent.
